There is nothing more unfortunate than to be involved in a car accident. When we accumulate injuries from the accident, after seeking the right medical attention, it is our right to file an insurance accident claim. In cases where the harm was caused by someone’s negligence or the defendant’s gross negligence, you can file a personal injury claim.
The claim is the key to receive just compensation from the expenses and damages incurred during the accident. If you have sustained any kind of injury and are seeking compensation, you should consult a solicitor who specializes in personal injury claims. They will conduct a thorough investigation and will ensure that your case is fought on the basis that is best suitable for you.
But what are the types of insurance claims? How much is the value of the pain and suffering received from the accident?
We want to help you get through the problem.
What are the Types of Insurance Claims?
There are two types of insurance claims you can work with: first-party claims and third-party claims. First-party claims involve the person who will file a claim towards his or her own insurance company, while third-party claims involve another person filing the claim to the insurance provider of the other party. Mostly, people who hold insurance have already covered the third-party who is injured as a result of their actions.
You can determine the type of claim you can file depending on the accident situation. When you caused a car accident, you have to file a first-party claim from your insurance provider. But, if a third-party caused the accident, you have to file a third-party claim to the driver’s insurance provider—the extent of the insurance coverage you have matters in filing an insurance claim.
How to Process the Insurance Claim
A personal injury settlement, also called a tort suit, is a monetary arrangement between you and your insurance provider to settle your medical bills, rehabilitation expenses, lost wages, and other losses you experienced as a direct result of the accident. The settlement is usually calculated on a standard percentage basis by the court. The upper percentage of the calculation is what they will pay you for the damages.
When you acquire an injury from an accident, one of your priorities is to get the incident report to the insurance company not more than 24 hours from the accident. The insurance will ask you to provide information about the accident.
An investigation will be opened by the insurance company to examine your claims. There may be documentation and other essential documents that need to be presented to the insurance company. The insurance company will calculate the value of your request before issuing a settlement check.
How to Calculate Pain and Damages for the Claim Value
When we process an insurance claim, we always wonder how much the case is worth. Most insurance companies and personal injury attorneys reckon on different formulas to attain a financial settlement. The settlement amount includes the lost income, medical bills, and compensation for the pain and suffering the injured party felt.
For some accidents, victims resort to filing a medical bankruptcy, because they are unable to pay off their substantial medical debt. To ensure that your personal injury claim is processed quickly and fairly, the strength of your case is involved as critical aspect of settling your injury claim.
Multiplier Method
The multiplier method is frequently used to evaluate pain and suffering. The claimant’s actual damages are multiplied by a certain number. Most car accident lawyers multiply the actual losses of their clients by three. Three is a reasonable number to quantify the damages for the claimant to have rational settlement value.
However, insurance companies have found a way to undervalue claims. They use sophisticated software programs, and the multiplier will depend on the seriousness of the injuries. It may be unfair, but avoid over-treating injuries as it may backfire and leave you with unpaid bills.
Daily Rate Method
Meanwhile, some insurance companies and personal injury lawyers use the daily rate method in calculating pain and suffering of the claimant. The method uses the “per diem” calculation. Each day or week that the claimant continues to suffer from the car accident, he or she will be given an amount of money.
Usually, the daily rate depends on the claimant’s regular income if they were not injured. The calculation of the per diem may be random and inconsistent, but it is the most reasonable offer.
Final Settlement Value
The most systematic method to efficiently calculate the claim is to use both ways, multiplier and per diem, to get the approximate value. The approximate settlement value will be the basis of your expectations. It is best to apply all the factors to help you create a more reasonable settlement value for your claim.
It is easy to calculate hospital bills and property damages. You can provide a receipt or quote from the shop and hospital for it. But, how about the subjective component experienced by the injured party? How much money would compensate for the pain and suffering of the wounded?
After the negotiation for the settlement value with the help of your car accident lawyer, draft a demand letter. A draft letter is essential in setting out the facts and circumstances of the accident.
It is undeniable that pain and suffering are highly subjective components. Each person describes their injuries differently. Thus, to provide just compensation, the court provides some factors that determine the amount for pain and suffering. The factors include:
- Time of recovery
- Severity of injury
- Location and nature of disfigurement
- Possible consequences that are in progress
- Socio-economic factors
- State damages caps
Settlement Adjustment
There is a need to reduce the personal injury settlement if both parties share fault. Sometimes, we become victims of our negligence, which leads to an accident. But, you have to remember that the consideration depends on the car accident laws in the state the accident occurred.
A settlement is valued on a variety of different factors, such as the type of injury and its impact on the victim’s standard of living, as well as the amount of pain and suffering endured. For this reason, consulting a qualified attorney who is experienced with pursuing cases that involve physical injuries or providing legal advice to those who have been injured in automobile accidents is strongly advised.
Claim and Appeal Process is Inadequate or Denied
Your insurance claim may be denied or dismissed due to several causes. Some are rejected because they were not quick in filing a claim, or they failed to submit relevant documents. Worst, the type of accident you had is not covered under the insurance plan you have. But, whatever the cause is, it is your right to receive a notification from the insurance company regarding your claim.
Negotiating for a settlement often involves making deals with insurance companies that will cover the bulk of the medical expenses and compensate you for the lost income. While the monetary value of a personal injury settlement is certainly a primary consideration for any victim, there really is no such thing as an “average” in regards to the dollar amount you may hope to receive. The truth is, settlements are often much more complex than just looking at the dollar amount.
Furthermore, you have the right to appeal to the insurance company when your claim is inadequate or denied. The appeal may require you to provide further examinations, information, and evidence of the accident. Appeal procedures may vary in insurance companies. Thus, it is best to consult with a car accident lawyer.
Whatever your case may be, a car accident lawyer like Jason M. Ferguson and his associates will provide you with the best services, while keeping your best interest at heart. For more information, visit Arizona Personal Injury Lawyers official website who can help you build a comfortable starting point in negotiations. Car accident lawyers will always provide you with the best answers regarding any inquiries you have about car accidents and injuries claim. Get moving forward!
Credits to the Author Jason M. Ferguson
Jason M. Ferguson, the founder of Ferguson Law Group, started his career working for an automobile insurance company as a trial attorney before owning his injury law firm for over 20 years. Attorney Ferguson has a unique experience, having tried cases on both sides of the court system in personal injury trials, unlike many other lawyers. Mr. Ferguson also served over 14 years as an Army Reserve officer and the Georgia Air National Guard. The Albany Herald recognized him as one of southwest Georgia’s “40 under 40” in 2010.
Interesting related article: “What is an Occuptational Injury?“