How Insurance Companies Calculate Accident Settlements
Have you been injured in a car accident and received a settlement offer from the insurance company that is much lower than you expected? This happens to most accident victims and probably gets you thinking about how the insurance company calculates their settlement offers. When it comes to calculating your settlement, insurance companies do not have a specific and precise mathematical formula since every accident claim is different. However, they do use a specific set of factors to determine the worth of your claim. See below for the 4 main settlement factors that insurance companies rely on.
Damaged Vehicles Settlements
When your vehicle is damaged in an accident, the insurance companies will most likely only pay for the cost of the repair or replacement of the damaged item(s). The exception to this rule is if the car is marked as a total loss meaning the repair costs exceed the value of the vehicle. When this happens, the insurance company will usually base their settlements on fair market value. In other words, you could have sold your car for the day of the accident but before the crash, not the cost of a new vehicle. In most cases, this is not enough to cover the price of a new vehicle.
When it comes to your injuries suffered in a car accident and how that gets figured into your settlement, it is negotiated separately from your vehicle damage. If you suffer a broken bone, you would receive extra compensation from the insurance company. The amount is determined by your total medical bills and the extent of your injuries documented in your medical reports, but in Ohio is part of the injury claim which also includes pain and suffering.
Pain and Suffering Settlements
Separate from vehicle damage and part of the injury settlement, there can also be compensation for pain and suffering. This is an amount in addition to your medical bills that will help compensate for the past and future pain and complications from your injury. Also, if your doctor expects you to need more treatment in the future, make sure your settlement includes an estimate to compensate for your future medical treatment as well. Before you accept any settlement offer from the insurance company, consult a personal injury attorney to review your case.
If you have been injured in a car accident, don’t sign or say anything. Contact a personal injury lawyer to discuss your case. Attorney Charles V. Contrada will explain your legal options, guide you through the process.
To speak to attorney Charles V. Contrada about a car accident in Ohio or Michigan, call 419.841.4400. Charles has helped thousands of individuals with car accident claims and will explain the legal options that are available to you. Call Contrada & Associates for comprehensive legal guidance that will help you to receive the most favorable outcome.