Have You Been Injured? We're Ready to Fight for You.

How Do Insurance Companies Calculate Accident Settlements?

Published on Aug 28, 2018 at 11:59 am in Auto Accident.

Many personal injury accidents cause a lot of pain. It could be from a car accident, slip and fall, or a defective product. What unites these accidents is that they usually happen because someone was negligent, meaning that if the person had acted responsibly, the accident wouldn’t have happened. When people file personal injury claims, insurance companies will go through and calculate a settlement for the injured person.

If you’ve been injured and want to make sure you’re getting fair compensation, Thomas Law Offices can help. The lawyers at this firm are well-versed in personal injury claims and will fight to get you the settlement you deserve.

What Costs Do Insurance Companies Take Into Account?

When calculating settlement, insurance companies have many categories to look at. The costs of an injury affect many parts of your life like work, your belongings, everyday life, and treatment.

  • Medical Expenses. Your injury may have put you in a hospital where you’ve seen doctors, had tests, or were given prescription medication. You may even require further treatment for your recovery. Insurance companies will look at your past medical bills and an estimate for the cost of your treatment in the future.
  • Lost Wages. Your injury could have kept you from working, so the insurance company will evaluate your lost income.
  • Loss of Earnings. Your injury or treatment may prevent you from working in the future. The insurance company will also calculate your loss of what you would have earned if you were able to continue working.
  • Property Damage. This is most common for car accident cases, where the insurance company will take into account the damage that the negligent party caused.
  • Pain and Suffering. You can also get compensation for pain and suffering, but this isn’t as cut and dry as the other categories.

How Is Pain and Suffering Calculated?  

Other costs like car damage or medical expenses have an exact number. But pain and suffering is different because people are trying to assign a numerical value to how poorly an accident injury has made someone feel or affected their life.

Some calculations may be determined with a multiplier. Depending on how severe your injuries are, a multiplier between 1.5 and 5 will be used with how much your damages have cost you. Lower multipliers will be given for less serious injuries where it’s expected for you to make a full recovery. Severe injuries like a traumatic brain injury or paralysis would have a higher multiplier because the injuries have permanent consequences.

The other way to determine pain and suffering is called the per diem method, which is when you receive a certain amount of money every day you have to live with the pain of your injury.

The insurance company isn’t the only party that can determine your settlement. Your lawyer will do the calculations as well to make sure you’re getting a settlement that’s fair and will cover the costs of your injury.

 

Free Case Evaluation

At Thomas Law Offices, our personal injury attorneys recognize that our potential clients are likely going through some of the most difficult times of their lives. We don't want you to have to worry about paying out of pocket for legal advice when you're just starting to learn your legal rights and options. That's why we provide free case evaluations. We'll offer our expert advice about your potential case and walk you through how we can help you.

Call us or fill out the form below to tell us about your potential case and a personal injury lawyer will get back to you as quickly as possible.

Meet Our Founder

Tad Thomas - Trial Lawyer

Tad Thomas

Managing Partner

Tad Thomas has dedicated his practice to representing plaintiffs in various types of civil litigation, including personal injury, business litigation, class actions, and multi-district litigation.

After graduating with his law degree in 2000 from Salmon P. Chase College of Law at Northern Kentucky University, Mr. Thomas immediately opened his own private practice and began representing injury victims.

In 2011, Thomas Law Offices was established in Louisville, Kentucky. Over the past decade, Mr. Thomas has expanded his firm and now has offices in three additional locations: Cincinnati, Ohio, Columbia, Missouri, and Chicago, Illinois. He is also a frequent lecturer on topics like trial skills and ethics and technology.

Legal & Firm News

Two Nurses Arrested in Ohio for Nursing Home Resident Neglect

In April 2022, Sunrise Manor nursing home’s director of nursing and assistant nursing director were arrested for allegations of patient neglect. Christina Drake and Jennie Elliott are being investigated following a criminal complaint filed in regard to an incident that occurred in April 2020. The two nursing staff members are facing multiple first-degree misdemeanor charges, […]

Read More

What Injuries Do Unattended Children Most Commonly Suffer?

It is a tragedy when a child is killed or injured in an accident that could have been prevented. Most of the time, it only takes one attentive adult to stop these tragic incidents from happening. The personal injury lawyers at Thomas Law Offices look at what injuries unattended children most commonly suffer and⁠—more importantly—how […]

Read More

What Injuries Can Result From Slamming on the Brakes?

No matter how safely you may drive, you will undoubtedly encounter situations in which you will have to take significant evasive maneuvers to avoid a car accident. While avoiding a motor vehicle crash is virtually always preferable to a collision, there are times when the evasive action can also cause harm.

Read More
Tad Thomas on The National Crime Victim Bar Association
Tad Thomas on AVVO
Tad Thomas on Lawyer Minds
Tad Thomas on American Association for Justice
Southern Trial Lawyers Association
Illinois Trial Lawyers Association
Ohio Association for Justice
Kentucky Justice Association
Tad Thomas on Attorney at Law Magazine
Tad Thomas on Attorney at Law Magazine
2021 Public Justice Member
AAJ Masters of Trial Law: Champion