How Does an Insurance Company Calculate a Settlement Offer? | Staver Accident Injury Lawyers, P.C.
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How Does an Insurance Company Calculate a Settlement Offer?

Written by Jared Staver

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Jared Staver is a Personal Injury Lawyer based in Chicago, Illinois and has been practicing law for over 20 years.

Jared Staver

CATEGORY: Insurance, Personal Injury

If you’ve been injured because of someone else’s negligent acts, you may be able to file a personal injury claim and collect a settlement from the liable party’s insurance company. The settlement is designed to pay for any damages that your injury has caused. These damages may include medical bills, lost wages, rehabilitation costs, emotional distress, and pain and suffering.

An insurance company will use a special calculation known as the damages formula to determine how much your personal injury claim is worth. They will then use that number to come up with an offer. To avoid being stuck with a low-ball settlement and ensure an insurer treats you fairly, you should consult our personal injury attorneys in Chicago at (312) 236-2900.

The Damages Formula

Once a personal injury claim is filed, an insurance adjuster will add up the total medical expenses associated with the injury to come up with a “medical special damages” number. The medical special damages number will help the adjuster determine how much the injured individual should be compensated for disability, pain and suffering, and emotional damages.

The adjuster will multiply the medical special damages number by one and a half to three times if the injury is minor and up to five or more times if the injury is especially deliberating and long-term. After this number is calculated, any income lost as a result of the injury will be added.

In short, the medical special damages number multiplied by 1.5 to 5 plus lost income is the number that an insurance company will typically start with to negotiate a settlement. Keep in mind that an insurance adjuster will not inform you of what formula they used to come up with the worth of your claim. In addition, understand that the damages formula serves as a way for insurers to arrive at a starting point for reaching a settlement amount. Other details regarding your accident will be considered after this starting point is determined.

How to Ensure a Fair and Full Settlement

Since insurance companies, like all businesses, exist to make money, they are known for offering low-ball settlements in personal injury claims. A low-ball settlement occurs when an insurance company comes back with a settlement amount that is well below reasonable.

To prevent getting stuck with an unfair settlement that doesn’t meet your needs, you should contact the Chicago personal injury attorneys at Staver Accident Injury Lawyers, P.C. We have years of experience negotiating with insurance companies and will work tirelessly to make sure that you receive the maximum compensation you may deserve.

Call Staver Accident Injury Lawyers, P.C. Today

Has an injury caused by another’s negligent behavior or reckless actions negatively impacted your life? If so, call Staver Accident Injury Lawyers, P.C. at (312) 236-2900 as soon as possible to schedule a free, no-risk consultation. With our legal support, you won’t have to settle for a settlement that’s well below the value of your claim.

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(312) 236-2900
(312) 236-2900
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