Making a determination of the monetary value of injuries sustained in a motor vehicle accident is a significant aspect of any personal injury claim.  Oftentimes, it is the most difficult part of a claim to establish, and varies depending on the circumstances. The following is an overview of how insurance companies assess the value of an injury claim.

To determine what a claim is worth, and what an insurance company must compensate for, the types of damages must be ascertained. Typically, a person who is at fault in an accident must pay the injured person for any damages sustained, which is usually covered by his/her liability insurance company.  Such damages include, but are not limited to, medical care and related expenses, permanent physical disability or disfigurement, damaged property, income lost due to the accident, missed experiences and lost opportunities, and emotional damages, for example, stress, embarrassment, anxiety, and/or depression, to name a few.

Generally, when determining the actual amount of compensation owed, for the most part, it is the equivalent of adding up the money spent and money lost. However, in cases involving pain and suffering, or missed experiences and lost opportunities, there is not a precise way to equate a dollar figure with the nature of such damages.  For this reason, as a way of coming up with a consistent, justifiable, and fair amount, insurance companies implement a standard damages formula to establish a final figure.

In the initial stages of claims negotiations, an insurance adjuster will calculate the overall medical costs associated with the injury, often referred to as specials or medical special damages.  This number is the base figure the adjuster uses to determine the amount of compensation to pay the injured person for pain and suffering, and/or other nonmonetary losses, also known as general damages.  When the injuries sustained are relatively minor, the amount of what is considered special damages, are multiplied by 1.5 or 2. When the injuries are serious, or more permanent, the adjuster multiplies the amount of special damages by up to 5.  In extreme cases, the multiplier may be as great as 10. Before the generalized amount of damages are deduced, if relevant, the adjuster adds on any income lost as a result of the injuries.  Keep in mind this generalized figure is not a final compensation amount, but only a number which the insurance company will begin negotiations with.

The extent of each person’s fault, otherwise known as percentage of fault, is the most critical factor affecting the amount an insurance company is likely to pay. The damages formula explained above indicates the extent of how much your injuries might be worth, however, only after a determination of fault is concluded, will the actual value of your compensation claim be resolute, and thus the insurance company will pay you.

In conclusion, there is no exact science when determining fault for an auto accident. With most claims, it will not be difficult to ascertain whether the insured person was entirely at fault, or if the injured party is to blame as well.  In situations involving comparative fault, where both parties are partially liable, regardless of the percentage of fault by either party, the damages formula amount will be reduced by the injured party’s percentage of liability to arrive at a final figure of compensation. Cases regarded as relatively successful, the insurance carrier pay out will encompass the full amount of your expenses, and make you whole again financially. On the other hand, where the initial settlement offer is inadequate, go back and speak with the claims adjuster, they may be willing to negotiate an increased amount.  If you are unable to reach an agreement with the adjuster on a final amount, you may have other legal options to pursue, such as speaking with an adjuster’s supervisor, mediation, arbitration, or small claims court.

If you are involved in a Missouri personal injury claim and seeking legal advice, contact the law firm of Hubbard & Kurtz at (816) 472-HOPE (4673). Our experienced staff of attorneys will assist you with any legal questions or concerns you have that are associated with an auto accident claim.

If you are involved in an auto accident in Missouri and seeking legal advice or representation, contact The Law Offices of Hubbard & Kurtz, L.L.P. at (816) 472-HOPE (4673) today! The firm’s extensive knowledge and experience with personal injury law will help ensure you receive the compensation you deserve.