How Do Insurance Companies Determine the Value of Personal Injury Claims?
You can sustain a personal injury in a number of ways, either following a motor vehicle accident or an on-the-job accident. Often, you need to file an insurance claim on time to ensure that you get a fair and reasonable payout. If you are wondering how insurance companies determine the value of your personal injury claim, we break it down below.
Key Factors Considered in Valuing a Claim
Before an insurance company decides on a personal injury settlement amount, several key factors come into consideration. Some of these factors include:
Medical Expenses
The cost of your medical care can arise from hospital stays, surgeries, physical therapy, medications, and any medical needs in the future, depending on the nature of your injury. Insurance companies consider these medical expenses when determining the value of your claim.
Lost Wages and Earning Capacity
A personal injury that puts you in the hospital for some time can prevent you from engaging in your day-to-day activities. These activities could be work-related, and staying away from them means losing your ability to earn an income. An insurance company must consider how much you should be compensated for your lost wages and earning capacity.
Pain and Suffering
Pain and suffering are not quantifiable aspects in their real essence, but insurance companies have devised ways to arrive at a figure to represent them in a personal injury claim. One common method that insurance companies use to determine the value of your pain and suffering is the multiplier method, which involves multiplying the actual damages like medical expenses and lost wages by any number between 1.5 and 5 based on how your personal injury is severe. A serious injury can get a multiplier of either 4 or 5, and minor injuries get a multiplier of 1.5 or 2.
Seek Professional Guidance to Maximize Your Claim
If you don’t have experience in dealing with insurance companies, it is better to let experienced lawyers in Dalton, GA, fight for your rights and negotiate a fair and proper settlement for you. At Morris & Dean, LLC, we understand how insurance companies operate, and we are happy to help you. Contact us today for a consultation, and let us help you secure the compensation you deserve.