If you get in the car accident then you call for the accident claim and after some days you get the settlement letter from your insurance company. The amount of the settlement is less than which you are expecting and even less than which you need for the replacement vehicle. When it comes to calculate your settlement then the insurance companies is not having the precise mathematical formula because every case is different. So they use the variety of factors to determine the amount of compensation which they are willing to pay on the car accident claim. The factors include the property damage as well as the personal injury.
Settlement factors for the damaged vehicles
If your claim involves the damages to your car then your settlement compensation will be the cost of the repairs and replacement for the damaged items. For instance if your bumper gets damaged then your settlement compensation will be the reasonable cost to get the bumper repaired and replaced. Remember the exemption for this rule is that if the replacement or repair cost exceeds the value of the car then your insurance company may decide that your car is the total loss. The replacement cost is generally based on the depreciation but not on the cost of the new vehicle. It means that the amount which you get is not enough to purchase the replacement vehicle.
Settlement factors for injuries
If you get injured in the car accident then this case is separately negotiated from your property damage. For instance if your bone gets fractured then you will get an extra settlement compensation as compared to the accident when the injuries did not occur. The compensation which you receive from your insurance company will be determined from your medical bills and your medical reports. The medical reports will influence the amount of the compensation which you receive for the pain and suffering.
Settlement for pain and suffering
Pain and suffering is the amount in addition in your medical bills to compensate for your past and future discomfort which is related to your injury. You need to complete your medical treatment and be released by the doctor and after that submit your personal injury claim to your insurance company.
If our doctor anticipates you for the future treatment and your settlement includes an estimate, discount to the present value which will compensate you for the future medical treatment. There are other factors also which will influence the amount of the settlement. For instance if you have the permanent disfigurement from the accident it can leads to the additional compensation whereas the serious injury will results in the higher settlement compensation. If you are having pain after completing your medical treatment then it will also warrant the additional compensation. Before accepting the settlement offer you must consult with the attorney who is specialize in the personal injury law.
Keep in mind that you will get only one settlement letter from your insurance company. Submitting your claim before all treatment will completely waive your rights for any future compensation. If you get agreed on the settlement then you can’t go back to your insurance company and request for more money.
Injury claim calculator
The claim calculator is used to estimate the reasonable settlement after incurring the personal injury like auto accident or any fall down injury.
- Medical expenses
Input your total medical payments
- Property damage
If you suffered from property damage in the incident like motor vehicle accident then input that value here.
- Lost earning
If the injuries caused you to the out of work then enter the total lost earning here.
- Future lost income
If your injuries or the treatment cause you for further lost wages then enter the estimate here.
- Estimated future medical expense
If your injuries cause you further medical expenses then enter the estimate of those expenses here.
- General damages multiplier
Used to estimate the total general damages in case of the injury. The more pain and suffering the higher will be the value.
Now the results based on the data entered above:
- Economic damages
The total of your damages and dollar loss.
- Non-economic damages
Compensation for your pain and the suffering which is based on the multiplier chosen.
- Target settlement
Special damages – bills and the financial costs
We all know that every case is different. The courts and the insurance companies are using some sort of the equation to determine how much the personal injury claim should be. To find out the right number they gather the list of all the expenses which incurred from first injury then add in more factors to arrive at the final compensation amount. The part of the equation is very easy. A total sum of every financial expense which was the direct result of the accident is calculated. It includes:
- Medical bills
- Damaged and lost property
- Hospital stay
- Cost of the medication
- Lost wages
- Cost of the medical equipment
- The expenses paid out of pocket.
If these items are added together it will give you the starting dollar amount. Keep in mind that these items are the first half of your overall damages.
General damages – pain and suffering
Another half of the equation is harder because it is difficult to assign the dollar amount to the pain and suffering. General damages of the suffering are also result of your injury. The general damages include:
- Physical pain
- Loss of the enjoyment
- Loss of the consortium
General damages multiplier
The general damages is not calculated using the bills so to create the sum total the insurance companies and the courts turns the general damages into the multiplier for their compensation formula. The multiplier can vary anywhere from 1.5 to 5 it all depends on the general damages. The general damages are for the victims, if the higher the multiplier will be then it results in the higher payout.
The compensation formula is:
Special damages$ * general damages multiplier (1.5-5) = total compensation paid$.
Each case is different
It is very important to know that the each and every case is different and many insurance companies will not want you know that they are using the formula to calculate your payout. It is always the worth to hire the personal injury lawyer who will help you to gather all the information which you need for the calculation and for the highest compensation payout.
Economic and non-economic damages
After entering your data hit the calculate the two dollar figure which you see the estimated total compensation field represents the two main types of damages which are responsible in many car accident cases that are economic damages and non-economic damages. The economic damages are easy to calculate through the documentation prove which also includes the medical expenses of past and the future also includes the lost incomes of past and future as well as the cost of getting your vehicle repaired. The non-economic damages are tough to put the dollar figure on things such as the pain and suffering, the emotional impact of the accident which results in injuries.
Calculating the settlement value of the car accident claim is not the easy process but it is possible of having the rough estimates of the damages by examining the number in your case. So gather all the records related to claim all together such as the medical bills, vehicle damage estimates and enter your information in the calculator. The amount you get is the rough estimate of the economic and non-economic damages which is involved in your case.
Remember that there is no universal formula which can tell you what your car accident case is worth. The settlement of the injury claim depends on the art of the negotiation. The calculator will provide you the rough estimate of the compensable damages in the car accident claim but it is not the substitute for the legal advice. Just be sure to enter 0 if the categories of the damages don’t apply in your case because the blank fields in the calculator will cause the trouble.
What to consider when calculating your demand
The very basic method to calculate the pain and suffering settlement is just to use the multiple of your actual costs. It includes the medical and the therapy bills, lost wages as well as the property damage. The actual costs are known as the special damages. The pain and suffering is the separate category which is known as the general damages. The amount or figure of your special damages is straight forward task. You just have to add all your bills and the receipts. The figures which come out represent your pain and suffering.
Pain and suffering is separated in two categories:
- The current pain and suffering can be endured from the time of the injury through the completion of the medical treatment and the therapy. After the treatment it ends at the same point. Its duration can be easily measured.
- The current and future pain and suffering is what is endured from the time of the injury and after the medical treatment its future is indefinite. Its duration is unknown and can’t be measured easily.
While calculating your settlement demand firstly you have to consider in which category your pain and suffering falls into. Your demand will be lower if your suffering is limited to the time between the injury and the completion of your medical treatment. If it is indefinite future then your demand will be higher.
Keep in mind that you can’t just demand the large amount of money for your pain and suffering. For that you have to provide the reasonable basis and the evidence to justify your amount. If you are unable to do that then your demand will be rejected. At the time of responding to your settlement demand many adjuster are expecting to add the small amount on top of the special damages just to cover the pain and the suffering. So don’t be the inexperienced claimant to accept any amount and move on.
Using of the multiple method
Many attorneys and the adjusters calculate your pain and suffering reimbursement by using the multiple methods. This method takes the total amount of your special damages and multiplies it by anywhere which is from 1 – 5 times it can be higher in case of the serious injury. The multiple can be increased or lowered but it depends on:
- The pain and the discomfort
- The severity and its duration
- Any persuasive abilities
Any soft tissue injuries or the minor sprains are multiplied by 1 ½ – 3x medical bills. The broken bones can be range by 3-5x medical bills. The permanent injuries or any brain damages is seen as the special multiplied which is greater than the 5x. Remember that the serious injury cases always require the attorney representation.