How Insurance Companies Value Injury Claims

I experienced firsthand how insurance companies value car accident injury claims. For the first three and a half years after graduating law school and obtaining my license to practice law in Kentucky, I worked for an insurance defense law firm. I saw how insurance companies looked at numbers and data rather than seeing you as a human being. They see you as another number. When an insurance company evaluates a claim, they rely heavily on numbers and data as the driving force of their evaluation. Here’s an overview of how they typically assess a car accident injury claim:

1. Medical Bills and Lost Wages

Assuming you have a viable liability claim, insurers will pay for your medical bills, lost wages, and pain and suffering. Medical bills and lost wages are often straightforward to calculate. However, remember you are also entitled to compensation for future medical bills, damages for future impairment to your ability to earn money, and future pain and suffering damages. To prove these future damages, a report or testimony from a medical expert or life care planner should be submitted to the insurance company.

2. Future Damages

The insurance company will need to estimate the amount required to cover future expenses and losses. However, it is rare for insurers to offer fair compensation initially, especially if you are not represented by an attorney. Even with a lawyer, the first offer often does not reflect fair compensation.

3. Pain and Suffering Damages

Valuing pain and suffering damages is one of the most significant calculations the insurance company will make. Here’s how they approach it:

Past Jury Verdicts

Insurance companies look at past jury verdicts in the local area for similar car accident cases where the plaintiff suffered similar injuries. They use this historical data to guide their valuation.

Pain and Suffering Multipliers

Insurance companies often use a pain and suffering multiplier method. They take your economic damages (e.g., medical bills) and multiply that amount by a factor, typically ranging from 1.5 to 5, depending on the severity of the injury. The more severe the injuries, the higher the multiplier. For example, if your medical bills are $10,000 and they use a multiplier of 3, your pain and suffering damages might be valued at $30,000.

4. Factors Influencing the Multiplier

Several factors can influence the multiplier used in your case:

• Severity of Injuries: More severe injuries generally result in a higher multiplier.
• Deposition Performance: If you present well and are likable in front of a jury, the defense lawyer may report that a jury could award you more money, which can positively impact the multiplier.
• Property Damage: The amount of property damage to the vehicles involved can affect the settlement offer. Significant property damage usually leads to higher settlement offers, whereas minimal damage might result in lower offers.

Conclusion

This method is not perfect, and every case is unique. All facts of the case need to be considered. For example, if you have significant injuries but minimal vehicle damage, I will argue this point with the insurance company to ensure you receive fair compensation.

I hope you found this video helpful. Please subscribe to my YouTube channel to learn more about injury cases and watch more of my videos. Lastly, if you were injured in a motor vehicle accident in Kentucky, remember: don’t wait, call Tate.