When insurers calculate car accident settlements, they aren’t just winging it. They have their own formulas and ways of arriving at what seems to be a reasonable settlement. However, making sure that they give you a check that is valuable can be a fight of its own. If you were injured in an accident and the other driver’s insurance won’t pay up, then you might want the assistance of our Middlesex County auto accident attorneys.
What is the Multiplier Method for Car Accident Settlements?
Many insurers look at an accident and use the “multiplier method” to measure the value of a car accident claim. This can give them a place to start negotiations for car accident settlements. The first thing the adjuster looks at is your medical expenses stemming from the accident. Then those expenses are multiplied by a factor of between one and five to determine non-economic damages, like pain and suffering. Finally, any earnings you missed out on and loss of earning potential are considered.
So let’s say that you end up with medical bills totaling $10,000. An insurer then considers how much pain and suffering this accident could have caused. They have decided that a multiplier of two is fair. Then you show evidence that you missed $4,000 in wages. Your settlement should be $10,000 times two, plus $4,000. So $24,000 is the value an insurer has assigned to your claim.
Should I Negotiate a Car Accident Settlement On My Own?
In this scenario, now it’s time for the insurance company to reach out to you. They send a letter, saying that they want to make things right. They offer a settlement of $15,000.
Wait, didn’t we just determine that your settlement should be $24,000? This is what the insurer calculated, but this does not mean that the insurance company is going to offer you $24,000. They want to get out of this for as little money as possible. You can try to ask for more money, but it can be difficult to negotiate with insurance companies on your own.
Can I Lawyer Help Me Secure a Better Settlement?
This is why many people contact personal injury lawyers. An attorney from our firm can help you fight for the compensation that you deserve. They can do that by:
- Handling negotiations on your behalf
- Gathering evidence needed to make your case
- Defending you from accusations of wrongdoing
We can advocate for you at every stage of this process.
Contact Our Law Firm Today
So if you have been hurt in an accident and you think that your settlement offer was inadequate, contact Stathis & Leonardis. We can schedule a consultation and tell you more about your legal options. Get ready to fight for the compensation that you deserve.