(800) 400-8742

Understanding Personal Injury Claims & Compensation Valuation

What is the value of my personal injury claim?

There are a lot of factors that go into determining the settlement amount for a personal injury claim. Insurance companies look over several factors related to your case to determine your claim’s value.

Liability & Damages – Who Pays and What Do They Pay for?

The person who is liable for the accident, and therefore their liability insurance company are required to pay the damages for your claim. Many of these damages have traceable expenses like bills and include:

  1. Medical Expenses
  2. Income Loss from Missed Work
  3. Permanent Damage & Disabilities
  4. Property Damages

 

Pain & Suffering – Overview

The value of some damages, like pain and suffering or missed experiences/opportunities is calculated differently than the traceable expenses. For these damages, many insurance companies will use one of two methods: the multiplier or the per diem method.

 

Multiplier method:

An insurance company that uses the multiplier method to determine the value of personal injury claim takes the traceable expenses and assigns a multiplier number based on the severity of the injury. Historically speaking, this number is usually between 1.5 and 5, and sometimes higher, if the damages are more severe. Some of the factors that determine severity are:

  1. How obvious the fault of the liable party is.
  2. Severity of the injuries
  3. Strong evidence to support the claim of pain and suffering (Verified Documentation)
  4. How long the recovery period will be.

 

Per Diem Method

The Per Diem (“By the Day”) method assigns a certain dollar value per day to be paid over a plaintiff’s recovery period, until they reach a point called “Maximum Medical Improvement.” This means you have reached a point where your condition cannot be improved anymore. If a doctor says it is going to take 150 days to reach maximum medical improvement, and the insurance company assigned a Per Diem value of $100, then your pain and suffering damages would be $15,000.

 

Pain & Suffering – Verification Process

An insurance company needs to verify any claims of pain and suffering. This is typically done by corroboration from medical professionals such as doctors, therapists, & psychiatrists as well as personal accounts from friends and family.

 

Settlement

Once an insurance company has calculated all the damages, they will make a settlement. If you are unsure whether the determined value of your personal injury settlement is high enough, you can always talk with an attorney at the Scranton Law Firm. We provide legal advice for all personal injury cases, and our attorneys are here to fight for you if we believe you are being low-balled.

Call The Scranton Law Firm For A Free Legal Consultation

Contact our California personal injury attorneys for a free case review. Tell us about your injury and we will determine your next steps.

Scranton Law Firm Reviews

Sean W.
18:48 29 Jun 19
Great law firm. They work really hard to get you what you deserve. I was so glad to have them on my side.
Erika W.
18:30 08 Nov 18
Scranton Law firm did a great job with my case. All my questions were answered in a timely manner and always with a sense of urgency. My dad was recently in...
Benjamin Van Vuren
02:46 26 Oct 16
Zach Thompson
18:47 25 Oct 16
Dalton Miesen
05:58 12 Aug 16
Great staff! Very helpful and knowledgable!
I recommend this firm 100%. If you are injured just call... They will help you!!
Juan Spencer
18:53 22 Jul 16
Their staff is wonderful, especially Esme, Heidi and Lissethe! Those ladies are the best!
Victor Lawson
01:24 17 Mar 15
Please Please Give These Guys A Call If You Are In Need. They Work For You, Not Themselves,
I guarantee it & I should Know.. Victor Lawson
Jose Chavez
04:47 20 Jan 15
Edgar Conde
04:55 18 Jan 15
Jose Murillo
15:25 09 Jan 15
Bobby Cook
19:46 03 Jan 15
Who are you goings to calls ?
Jason Molino
01:50 30 Sep 14
If you have been in an accident Scranton Law Firm is who you want to talk to bottom line.
Yesenia Fernandez
05:20 06 Jun 14
Bigboy Juarez
12:54 31 Mar 14
Trina Mari Moreno
20:48 05 Feb 14
Kevin Hallmeyer
23:20 03 Jan 14
Josie Hudson
20:28 28 Dec 13
Christian Scranton
06:55 11 Dec 13
Renae Paige Switzer
05:03 04 Nov 13
Tobias Graham
02:38 02 Nov 13
Laura Cowles
06:56 29 Aug 13
Justin Dansereau
00:54 25 Aug 13
Everything
Colleen B.
14:16 11 Aug 08
In January, my husband and I were looking for a divorce attorney. We knew exactly how we wanted the divorce to be handled and all we needed was someone to...
Next Reviews