How Do Insurance Companies Calculate Injury Claims?

A motor vehicle accident in which you suffer a serious injury has the potential to turn your life upside down. Not only can it result in pain and suffering — both physically and emotionally — but it can alter the way you live, your financial circumstances, and your ability to earn a living.

With this in mind, it’s important to learn more about your legal rights and the steps you can take to obtain compensation for your injuries and related damages. For example, if you were injured by a negligent driver, such as someone who was speeding or driving under the influence, you’re in line to seek compensation from their insurance company. 

Unfortunately, there’s nothing simple about obtaining compensation from the liable party’s insurance company. They’ll do whatever it takes to settle your claim for as little as possible. Consulting with an accident lawyer puts you in a position of power, as they know what to expect from insurance companies, how to negotiate, and the tricks they often use to minimize payouts.

Know What Your Claim Is Worth

Above all else, you should first gain a better understanding of what your claim is worth. That’s why it’s best to hire a car injury attorney to represent you. Without this guidance, it’s a challenge to understand what your claim is worth.

The liable party’s insurance company is on the hook for three general types of damages: financial, physical, and emotional.

  • Financial damages. These take on many forms, such as current and future medical bills, medical equipment, lost wages, and property damage.
  • Physical injuries. Physical injuries can affect you in many ways, such as making it impossible to work. Furthermore, any permanent scarring or disfigurement will also come into play. 
  • Emotional injuries. Serious accidents can lead to emotional trauma, including but not limited to depression, anxiety, and broken relationships.

When you have an estimate of what your claim is worth, it’s easier to fight for all the compensation you deserve. You also reduce the likelihood of accepting a lowball offer that you’ll later regret.

Understand the Insurance Company’s Process

Just because you know what your claim is worth doesn’t mean the liable party’s insurance company will pay that amount. From their perspective, there’s only one goal: minimizing the amount of money they pay out. Just like you and your legal team, they’ll take into consideration financial damages, physical injuries, and emotional injuries.

Tangible damages will be easier to calculate, as you can provide proof of your losses. For instance, your medical bills are your medical bills; there’s no grey area here.

Conversely, intangible injuries, such as pain and suffering, will be more difficult to assign a monetary value to. That’s because there’s no quantifiable proof of your pain and suffering, now or in the future. This is often the most contentious phase of the negotiation process, as the two sides aren’t likely to see eye to eye. 

After calculating all damages, the insurance company will use a multiplier based on the extent of the injuries. Generally, this multiplier is somewhere between 1.5 and 4, however, it can reach as high as 10. The more severe your injuries, the higher the multiplier. Once again, this is something your accident lawyer can and should negotiate with the insurance company.

Let The Lopez Law Group Help You Navigate the Injury Claims Process

If you need a car injury attorney to review your case and negotiate with the liable party’s insurance company, contact us for a free consultation online or via phone at (956) 968-7800. We help injured individuals in Mission, McAllen, Laredo, Edinburg, Pharr, Brownsville, Harlingen, Houston, Weslaco, Tyler, Spring, Corpus Christi, and other locations throughout the state receive compensation for physical injuries, emotional distress, and financial losses.

Like this article?

Share on Facebook
Share on Twitter
Share on Linkdin
Share on Pinterest

  • This field is for validation purposes and should be left unchanged.
lopez law logo