It’s crucial to note that insurance companies will use all legal means to reduce the amount they have to pay out in settlements. They achieve this, for example, by paying as little as possible in damages for a person’s pain and suffering. Insurance companies’ methods for determining pain and suffering damages are not standardized.
To get the maximum settlement claim, learn more about how insurers calculate pain and suffering.
- Multiplier Method- One technique is to add all the economic costs (medical bills, lost income, out-of-pocket expenses, etc.) and then multiply that total by a predetermined number (often between 1.5 and 5). This approach is known as the multiplier method. For instance, if a person suffers $10,000 in economic damages, a lawyer could multiply that amount by three to come up with a total of $30,000 in pain and suffering damages.
- The per diem (per day) method- With this approach, each day from the moment of the injury until the plaintiff reaches maximum medical recovery will be given a certain monetary value. Assume, for instance, that the victim of the injury needed 200 days to recover and that $100 was designated as the per diem payment. $20,000 would be awarded in pain and suffering damages in this case.
Common Mistakes That Can Ruin Your Insurance Claim
Insurance companies will take all reasonable measures to minimize or even prevent you from obtaining fair compensation when negotiating a settlement for your totaled car. Therefore, it is essential to know what you should do and shouldn’t do following the accident from the beginning.
Here are some frequent errors that can hurt your auto accident claim or lower the amount of compensation you receive.
Failing to get a police report
A police report is crucial information that your car accident attorney can use to determine who was at fault in the collision. A police report would contain important details about the collision, including how it happened and any witnesses’ names and contact information. As a result, you should always call the police, get a report, and acquire as much information as possible from the other driver.
Failing to seek medical care
You must get medical help immediately to recover from your injuries properly. Additionally, a crucial piece of evidence to support your vehicle accident claim is your medical condition and your course of treatment.
By seeing a doctor as soon as possible after the accident, you can avoid making fake claims and provide concrete proof that the vehicle accident caused your injuries. More significantly, some wounds, such as internal bleeding, torn muscles, and broken bones, may not show immediately. As a result, it’s crucial to get immediate treatment after an automobile collision.
Giving the insurance company too much information
Trusting the insurance provider is a mistake that might destroy your auto accident claim. Be aware that the insurance adjusters are not interested in providing you with a fair settlement; rather, they care more about saving their firm money. Don’t offer the insurance company information that they’re not entitled to. Avoid discussing blame or your injuries immediately, and avoid giving an audio recording. Do not provide the business with any information beyond what is necessary.
Accepting an Instant Settlement
If you were seriously hurt in a car accident, you could have a lot of medical debt to pay off. Along with dealing with the damage to your car, you also have to deal with the inability to work, which results in missed income. Insurance providers will contact you with an offer at this stage because they are aware that accident victims are frequently under stress. If you accept the settlement, they will shut your file, and you won’t have the opportunity to sue them later.
Waiting too long to consult a lawyer
The insurance company will take every measure to safeguard their own financial interests following an automobile accident. Therefore, it’s crucial that you consult a qualified auto accident lawyer as soon as possible after the collision.