When you are involved in a vehicle crash that has deemed someone else’s fault, you are entitled to get compensation to cover the total expenses of your injuries and vehicle repairs. When calculating the cost of damage to your vehicle, factors like its condition and mileage are used to estimate the repair costs. However, unlike vehicle damages, the cost of injuries is more difficult to calculate because it depends on their severity, and whether or not they are permanent. There are different methods that can be used to provide an estimate for the cost of physical injuries, though. Read on to learn how to calculate a car accident settlement.
Information Gathering
Several things are considered by lawyers to calculate the value of the damages that you should get for the injuries suffered in an accident. The at-fault driver’s insurance company is liable to pay costs that include the following:
- Lost wages and other related income
- Medical expenses
- Permanent disability
- Pain and suffering
- Emotional damages
You should make sure that you keep all the documentation to make it easy to calculate the damages. If the case involves car replacement, physical pain, and emotional or mental suffering, the insurance company should provide additional compensation. The payment will come on top of the reward offered to cover the lost wages, medical bills, and vehicle repairs.
Damage Formula
The at-fault driver’s insurance company will calculate the special damages that include the total medical expenses incurred as a result of the accident. The adjuster then multiplies the number of special damages by any figure between one and three to determine your compensation. When the injuries are severe, the adjuster can multiply by five or more. However, the damage formula is not final since it only establishes the starting point for negotiations between the insurance company and the claimant. Various factors are considered before the final settlement is reached.
Hire a Lawyer to Determine the Worth of an Accident
As per experts at https://rmfwlaw.com/new-york-car-accident-lawyer, hiring a personal injury lawyer is beneficial since they have the knowledge required to calculate the value of your claim and the experience to ensure you receive your due compensation. The Georgia-based attorneys at https://butlerfirm.com/georgia-personal-injury-lawyers/brain-head-injuries/ explain that if you work with an experienced legal practitioner who knows how to handle car accident cases, you can increase the chances of getting maximum damages covered. Lawyers know how to negotiate with insurance companies and calculate settlement for your pain and suffering.
Multiplier Method
This method is used by accident lawyers and insurance companies to calculate the monetary value of injuries you suffer from an accident. With this formula, you apply a multiplier to the total amount of special damages. The multiplier method is based on the notion that injuries that involve quantifiable damages like medical bills are likely to have more serious implications for the accident. Therefore, a multiplier would be required to determine the actual cost of the accident.
For instance, if your hospital bills cost $5,000 and the total amount of wages you lost is $1,500, the lawyers will apply a multiplier effect to $6,500. A multiplier is a figure between one and five, and most lawyers and adjusters commonly use three to calculate the settlement you deserve. Thus, in this example, your total damages will be $19,500. The extent of your injuries will determine the multiplier, and it can increase if there are aggravating circumstances. If the liable driver was intoxicated, the multiplier can be more than five. Conversely, a lower multiplier could be used if you were at fault and contributed to the accident.
Per Diem Method
The other way to calculate settlement following a car accident is the per diem method. In short, this method involves the calculation of the money that you would lose every day or week as a result of the injuries caused by the collision. In other words, this formula helps to calculate your lost total earnings as a result of the accident.
If you are involved in an accident, you will likely suffer damages that will result in unexpected expenses, from medical bills to loss of income. If the accident was caused by another driver, you are eligible to demand a settlement. However, the compensation you will receive depends on the severity of your injuries. Accident attorneys and insurance adjusters use various methods to calculate the compensation you should receive. The multiplier, damages, and per diem methods are commonly used by insurance companies to calculate the settlement you deserve for your pain and suffering following a vehicle collision.
