The underlying principle of a personal injury claim is that expenses associated with injuries along with suffering can be given a monetary value and awarded to the victim. What an insurer will assess as financial damages can differ greatly from what a victim sees as his or her loss. This disagreement has to be settled prior to the victim, or plaintiff, accepting any amount of damages from the insurer. At the very least, the victim should have an expert personal injury attorney review any settlement offer prior to acceptance to ensure your rights are being protected.
An Insurer’s Formula for Determining Value of Injury Claim
Each insurance company has some variance of a formula to calculate what they believe an injury to be worth.
- First, the insurer will add the obvious monetary amounts such as medical costs, lost wages and property damages.
- Next, the insurance representative will assess a monetary amount to the more obscure damages such as loss of lifestyle, psychological suffering and long-term side effects.
- The two figures are added together, and then that total is multiplied by a factor based upon the severity of the injury.
- Insurers will consider the victim’s age, background, and earnings in calculating damages.
The more catastrophic the injury is, the higher the settlement offer will be. Obviously, there are many ambiguous factors that must be established to reach an acceptable agreement.