Insurance Companies and Personal Injury Settlements: How They Are Decided

When you suffer an injury at the hands of someone else’s recklessness or negligence, then you can file a personal injury claim. Normally, you seek out compensation from the at fault party’s insurance. This is a third-party claim. If you believe that the other person is responsible for your damages, then you need to present your case and the evidence with all of your damages. The insurance company then compensates you for the expenses. How do the insurance companies decide what to pay?

Lost Wages and Medical Expenses

The most straightforward expenses that you have are the ones that you can easily calculate. When it comes to calculating the compensation, insurance companies will look at your wages and medical expenses. You can make an argument for medical costs and for any other quantifiable loss that occurred due to the other person.

Pain and Suffering Expenses

Pain and suffering is where things become more complicated. This is a legal term that can encompass a variety of injuries. This is not just physical pain but also emotional and mental injuries. For instance, if you suffer from anxiety, depression or PTSD as a result of your accident, then you not only should receive compensation for the treatment of mental disorders, but also, you deserve pain and suffering because it seriously changes your ability to enjoy life.

When it comes to the expenses that you ask for and the compensation that you deserve, you will have to negotiate with the insurance company. Most insurance companies are not going to agree to a high sum at the first attempt. They will also want proof that you deserve the number that you are asking for.

Pain and Suffering Calculations

The insurance companies have a way of calculating pain and suffering. They often use a multiplier method. This multiplies the actual damages by a certain number dependent on the severity of the injury. Others may use the per diem method. This is where a set amount is added for every day after the accident until the plaintiff recovers. Now, insurance companies do not have to use either of these methods. Many use a computer to help them figure out a settlement amount.

When it comes to your personal injury claim, if you are seeking compensation from the insurance company as a third party, then the insurance company will have its own way of deciding what a person deserves. You will discuss your options with a personal injury lawyer, like a personal injury lawyer in Philadelphia, PA from Wieand Law Firm, and work towards reaching a settlement.

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