How Do Insurance Companies Determine Settlement Amounts?

If you’ve recently gotten injured in an accident, you may be wondering how much your settlement could be. By learning about how insurance companies determine settlement amounts, you’ll be able to calculate how much you could possibly receive as compensation.

How Insurance Companies Calculate Settlements

Insurance companies will use the damages formula to figure out how much your claim adds up to. After you file your claim, the insurance company’s adjuster will add up your total medical expenses from the injury to see how much they need to compensate you for your injury, pain and suffering, and any other emotional damages that could apply. They will multiply this number by one and a half to three times if you experienced a minor injury, and by up to five or more times if your injury is debilitating or lifelong. Once they reach this number, they’ll add in any loss of wages you reported.

Getting the Settlement You Deserve

Insurance companies are only out for themselves. After an accident, they will typically offer the injured party a low settlement before the party has time to think about it or realize the full extent of their injuries. It is always a bad idea to accept the first offer. Instead, it’s critical to get in touch with a personal injury lawyer right away to fight and try to get a higher settlement.

Contacting a Personal Injury Lawyer

If you were injured in an accident and you now need to find legal representation to seek out a settlement, then contact the personal injury firm Gash & Associates. Gash & Associates help clients throughout Westchester County and we offer free consultations. Reach out today by calling (914) 328-8800.

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