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The Insurance Formula Used For Claims

After being involved in an accident in which you were injured, you may have to deal with an insurance company to see how much compensation that you will get from them. Not everyone knows that there is a formula that these insurance companies use to determine how much compensation someone receives. This formula does not always cover the costs that a person may need. If you know about and understand the insurance formula, you may be in a better place to negotiate for more compensation and reach a settlement that will cover everything that you need. It is a good idea to have the help of an experienced attorney whilst going through negotiations. Attorneys have a better understanding of what tricks insurance companies use to try and reduce or deny a claim. So what is this formula?

The Formula

If a person is liable for an accident often their liability insurance company must pay an injured person for their damages. This can include

  • expenses related to medical care or rehabilitation

  • lost income due to time off, related to the injury

  • any physical or mental suffering

  • permanent disability or disfigurement

  • loss of experiences (family, social, etc.), and

  • emotional damages

It is difficult to put a dollar amount on pain and suffering. This is especially true when a family member or loved one is lost. This is why the formula exists!

The easy part is at the beginning of negotiations on a claim. An insurance agent that is experienced in claim adjustments will add up any medical expenses related to the injury. Any of the above, such as suffering, is classified as "damages". The insurance agent will often take the medical expense amount and multiply it by 1.5-3 times the amount to come up with a number to compensate the person with. If the injuries are severe, long-lasting, extremely painful, or anything that requires invasive medical treatment, the insurance company will most likely multiply the medical expense total by a higher number. They then add the lost income to this number and arrive at this total.

This is the usual formula, but it is not used everywhere. The insurance agent will most likely not disclose how they arrive at this number, so it can be frustrating when they arrive at a number that you think is too low. Knowing that there is a formula going in can greatly increase your chances of negotiating for more compensation, if needed.

It can be a difficult time in your life if you are suffering from a serious injury, or have lost a loved one. Asking for help is never a bad thing in a situation like this. If you have the help of an experienced attorney, they can deal with the insurance company while you focus on recovering and getting back on your feet.

The attorneys at the Kyle Law Firm can help you with your personal injury cases and we will make sure that you get the compensation that you deserve. We will fight aggressively to make sure that your settlement is what you want it to be. Please contact us today if you have been in an accident where someone else was liable.

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