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  • Ways to Estimate/Calculate Your Car Accident Compensation

    Ways to Estimate/Calculate Your Car Accident Compensation

    September 3, 2021 | Car Accidents, Compensation, Personal Injury

    Receiving Compensation from a Car Accident

    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.

    How long has it been since the car accident?

    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.

    Compensation for serious car accidents:

    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.

    Using the Multiplier Method to Calculate Car Accident Compensation

    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 using the multiplier method to calculate car accident compensation, it is important you consider:

    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?

    Using The Per Diem Method to Estimate your Car Accident Settlement

    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.

    Getting a final amount

    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.

    What now?

    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.

    If you or someone you know has been injured or affected by a car accident, then set up a free consultation with Donna Frayne – Missouri’s top personal injury lawyer.

    Donna 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.

    We handle all types of claims, from car accidents to medical malpractice to workers’ compensation.

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