November 21, 2025 | Car Accidents, Compensation, Personal Injury
One of the primary issues in the case of pursuing car accident compensation is figuring out the exact amount for which you want to ask. Physical damages, emotional suffering, and medical bills you incur for your injuries are all things for which you can seek compensation.
It is essential to get the amount you deserve. Let’s take a look at a few things that you’ll have to know when determining the amount you should receive.
It is quite confusing to determine how much your compensation should be when you are planning to make an injury claim after being in a car accident. Insurance companies have multiple methods that they employ when they want to calculate a personal injury claim.
These claims generally include everything from medical bills to lost wages. Furthermore, it also includes some money for the injury caused. Often, this compensation is called “pain and suffering.” This article discusses how you can determine the value of a car accident.
Two commonly-used methods: the multiplier method and the per diem method.
In the case of more severe accidents, the multiplier can even be a 4. However, in the case of a fender bender, however, the multiplier is usually a 1 or 2. The multiplier also depends on the situation.
For example, if the driver were intoxicated while he or she was behind the wheel, then the value of the multiplier would be higher. Similarly, if your actions caused the accident, then the multiplier would be much lower.
The multiplier method (or Legrange Method) is a frequently used method that calculates the amount of “pain and suffering” you incur by multiplying the actual damages – that is, the medical bills and the lost wages – with a specific value. Most lawyers use three as the multiplier so that the value comes up to be a reasonable amount.
Say, for instance, your medical bills after an accident totaled $5,000 and the wages that you lost were $1,000. The total actual damage is, therefore, $6,000. Once multiplied by 3, that value becomes $18,000, which would be your total compensation.
Recently, however, most of the insurance companies try to negotiate when using three as a multiplier for the payment. They use sophisticated software programs and algorithms to arrive at the correct multiplier, given your situation.
Many factors help determine the multiplier value, including the time it takes for you to recover, the seriousness of the injury or injuries, and whether you develop any aggravating conditions after the accident.
Therefore, if you fractured your femur bone during the crash, for instance, and will have to get multiple surgeries before settling in for quite a few weeks of recovery, you should expect to be compensated for a lot more than you would have had you been involved in a simple fender bender.
When you are making a car accident claim, make sure that you only claim for the more severe injuries. Insurance companies do not want to pay for unnecessary medical treatment. They would be reluctant to pay for the four or five months of physical therapy for a minor injury.
Pain and suffering compensation does not take into account any medical bills that are redundant and are not related to the significant injuries sustained from the accidents. Presenting too many medical bills may eventually backfire as they may go unpaid because of insufficient compensation.
Related: What Types of Damages Can I Claim After a Car Accident?
The Per Diem (or the daily rate) method takes into account the number of days you are suffering from your injuries. A particular value is assigned for each day, and you will receive that amount for each day unless you are alright and able to resume your daily activities.
Let’s take the previous example where you had $5,000 of medical bills, plus a lost income of $1,000. That is a total of $6,000. Now, the value assigned for each day by the insurance company is $200.
If you took three months or 90 days to recover and resume your work, then you will get 90 times $200 or $18,000.
The best way to get a final value is to use the multiplier method and the daily rate method to get an estimate. However, you may have to adjust your expectations based on a bunch of factors.
These factors include the severity of your injuries, whether other people were also injured, if the injuries sustained will have permanent effects or not, whether you were out of work, or you were laid off for not being able to work, and if you are convinced that you will make a reliable witness on your behalf.
Taking into account all of these, you will have to claim a reasonable amount. For instance, the multiplier method says you should claim $18,000, and the daily rate method says you should claim $30,000, then you can settle for approximately, $24,000.
If you have an injury whose effect will last a lifetime, then you can add more to that amount. On the other hand, if you have merely sprained your wrist and a part of it was your fault, then you have to subtract from $24,000.
When evaluating your car accident settlement, our attorneys examine factors that go beyond standard formulas:
In Missouri, you generally have five years from the date of the accident to file a personal injury lawsuit. However, it’s crucial to act quickly because:
We recommend contacting an attorney as soon as possible after your accident to protect your rights.
Missouri follows a “pure comparative fault” rule, which means you can still recover compensation even if you were partially responsible for the accident. However, your settlement will be reduced by your percentage of fault.
For example, if your total damages are $30,000 and you’re found to be 20% at fault, you would receive $24,000 ($30,000 minus 20%). This makes it critical to have experienced legal representation to minimize your assigned fault percentage.
The value of your case depends on multiple factors including:
While online calculators can provide rough estimates, every case is unique. Schedule a free consultation with Ortwerth Law for an accurate assessment based on your specific circumstances.
Almost never. Insurance companies routinely make lowball initial offers hoping you’ll accept before understanding the full extent of your damages. These first offers typically don’t account for future medical expenses, undervalue pain and suffering, ignore long-term impacts on your life and career, are calculated to save the insurance company money, not compensate you fairly
Before accepting any settlement offer, consult with an experienced car accident attorney who can evaluate whether the offer is fair.
If your damages exceed the at-fault driver’s policy limits, we explore other sources of compensation including:
This is one reason why it’s essential to have an attorney who can identify all potential sources of recovery.
The timeline varies significantly depending on things like the complexity of your case, the severity of your injuries, whether liability is disputed, the insurance company’s cooperation, or whether litigation becomes necessary.
Simple cases with clear liability and minor injuries may settle in a few months. Complex cases involving serious injuries can take 1-2 years or longer. We never rush to settle until you’ve reached maximum medical improvement and we fully understand the extent of your damages.
Missouri law allows you to recover both economic and non-economic damages:
Economic Damages:
Non-Economic Damages:
In cases involving gross negligence or intentional harm, punitive damages may also be available to punish the at-fault party.
While you’re not legally required to hire an attorney, statistics show that accident victims who are represented by lawyers receive significantly higher settlements than those who negotiate on their own. A local car accident attorney has experience speaking with car insurance providers and an understanding as to how they think and when they are trying to minimize your compensation.
They also will know when it is time to take your case to court if necessary. At Ortwerth Law, we offer free consultations so you can understand your options with no financial risk.
Whether you need help calculating the car accident compensation you are owed or want to start the process of filing a claim, the St. Louis injury attorneys at Ortwerth Law are here to help. We help the people of St. Louis, Missouri get the compensation they deserve for these like injuries, property damage, and payment for lost wages after their automobile accident.
We have experience going up against some of the biggest insurance companies in the United States and we also have advanced capabilities when it comes to handling truck accident lawsuits in St. Louis, Missouri.
It all starts with calculating the approximate amount that you’re due. After you have a rough idea of how much you want to ask for, get a start on drafting that demand letter with the help of your personal injury attorney.
Craig Ortwerth has more than 20 years of experience representing victims of car accidents. We strive to create a stress-free environment where you can discuss your personal injury case and your needs.
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