How Do Insurers Calculate Car Accident Settlements?

Calculating an Insurance Settlement for a Car Accident

Posted on behalf of Jeff Pitman on July 12, 2018 in Car Accidents
Updated on February 24, 2022

blank insurance formMost car accident cases are resolved through insurance claims. Insurance companies review a variety of factors to determine the value of your car accident settlement. Insurers often use certain systems to bring everything together and determine your settlement offer.

If you or your loved one sustained an injury in a car accident, you should contact a licensed Milwaukee car accident attorney at PKSD for help. We can provide you with information about the potential value of your claim and negotiate with insurance adjusters to try to ensure you receive a fair settlement.

What Factors Does the Adjuster Look At?

Insurance adjusters consider a variety of factors when determining the value of a car accident settlement. One of the main things they review is the damages you suffered, including:

Property Damage

The insurance settlement usually includes the cost to repair damage to the vehicle caused by the accident. The only time an insurer will not include this cost is if the vehicle is considered a total loss. When this happens, the insurance company may provide compensation for the current value of the vehicle instead of providing a new car.

Medical Expenses

The total amount of medical expenses may include many types of treatment, including surgeries, testing, medications, and physical therapy and rehabilitation.

Pain and Suffering

Physical and emotional pain and suffering calculations are subjective. However, in most cases, the more severe the injury, the higher the value of pain and suffering.

The severity of your pain and suffering can also be a point of contention with the insurance company. This is one of the reasons it helps to have an experienced attorney at your side who will not accept lowball offers.

Lost Income

You might not be able work until you finish treatment or therapy. You could also miss work while attending doctor’s appointments. Fortunately, you may be able to recover insurance compensation for this lost income.

Determining a Settlement Amount

After collecting information about the damages above, the insurance adjuster investigating the incident may use certain systems to calculate a specific settlement offer.

Some insurance adjusters use the per diem system in which they calculate the value of the victim’s pain and suffering and multiply this figure by the total number of days suffering occurred.

In the pain multiplier system, the insurance adjuster multiplies the cost of medical bills, lost income and other damages by a variable between one and a half and five. This variable is usually higher if there is a greater amount of pain and suffering involved in the claim.

Another important matter in settlement calculations is the insurance policy and limits that exist within the coverage. If the policyholder does not have sufficient coverage for all the incurred damages, the victim may only receive compensation up to the limits of the policy.

Seek Legal Assistance Today

If you were injured in a car accident, it is important to contact a knowledgeable lawyer to discuss your legal options.

The personal injury lawyers in Wisconsin at PKSD offer a free, no obligation legal consultation. In this consultation, we will start a case assessment in which we determine if the other party may be responsible for your accident. If the other party could be at fault, we may be able to pursue compensation for the damages you have suffered.

Complete a Free Case Evaluation form today or call us at 877-877-2228.

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