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How Do Insurers Value an Injury Claim?

July 29, 2022

Without knowing how much your personal injury claim is worth, you may make the mistake of accepting a settlement that is not in alignment with what you are truly owed. By recognizing the process that insurers use to value personal injury claims, you can increase your odds of recovering maximum compensation.

How Do Insurers Value an Injury Claim?

Compensation in Personal Injury Cases

The amount of compensation you are due in a personal injury claim depends on the total worth of your damages. Damages are dictated by the losses you have incurred due to the negligence of a third party. Therefore, the person at fault must have caused any damages you seek compensation for.

If the damages were caused by another party that is not involved in the claim, the insurance company will not feel liable for those losses. That is why claimants are expected to provide evidence showing their losses and that they are associated with the accident at the center of their claim.

Insurance Carriers Pay For These Damages

If a person is found to be at fault in a personal injury claim, their insurance company will pay the plaintiff for the following damages:

  • Medical expenses and the cost of care associated with injuries sustained in the accident
  • Wages that were lost due to the plaintiff’s inability to work after being injured in the accident
  • The loss of physical ability
  • Disfigurement
  • Loss of enjoyment of life
  • Loss of experience, such as education or social engagement
  • Emotional damages, like emotional distress, depression, or strain on relationships
  • Pain and suffering
  • Property damage

How Damages are Calculated

Insurance adjusters will add up the total medical expenses and all other calculable losses associated with an accident-related injury to start the process of finding the full value of your claim. These expenses are often referred to as special damages. Using the special damages, the adjuster will then determine how much compensation you are due for non-economic damages, such as pain and suffering or emotional distress.

This process involves multiplying the special damages amount by a multiplier ranging between 1.5 and 5. The multiplier is determined by the severity of your injury and the pain/loss associated with it. When an injury is incredibly painful or long-lasting, the multiplier used would be closer to 5, while less serious injuries will fall closer to 1.5.

After this step is done, the adjuster adds on any income that has been lost due to the accident. This includes future wages and lost earning opportunities. Once the final number is determined, negotiations begin based on that estimate.

You Need a Lawyer to get the Full Value of Your Injury Claim

The job of a Denver injury lawyer is to negotiate on your behalf to recover the maximum amount of compensation available. The insurance adjuster’s job is effectively the opposite, as their employer’s goal is to minimize losses. Therefore, someone who is not equipped with legal expertise will likely struggle to get the full value of their injury claim.

To ensure you are fully compensated, speak to a lawyer from The Fang Law Firm. Thanks to our substantial background in personal injury law, you can trust us to help you get a favorable outcome.