Calculating a reasonable settlement offer involves adding together economic losses, such as medical bills and lost wages, and non-economic damages, such as pain and suffering. Established formulas are often used to arrive at a figure that reflects the true impact of the accident on your life. The first thing an insurance company analyzes is who was at fault for the accident. The settlement offer may be higher if the insured party is responsible.
If the liability of the parties involved is disputed or shared, the offer may be lower. Once the insurer has reached a settlement figure, it must decide what to offer. The first offer will be a percentage of what the insurer believes to be the real value of the case. For example, the insurance company may require that the first offer be 40% of the case value.
There is no industry-wide standard in this regard. Learn more about the factors that determine the value of personal injury compensation. In short, the number of special medical damages multiplied by 1.5 to 5 plus loss of income is the number an insurance company normally starts with to negotiate a settlement. Keep in mind that an insurance adjuster will not tell you what formula they used to determine the value of your claim.
In addition, understand that the damage formula serves as a way for insurers to get to a starting point to reach a settlement amount. Other details related to your accident will be considered once this starting point is determined. In most cases, you must reach a maximum level of recovery before accepting a liquidation offer. However, if that's not possible, you should at least have reached a phase of your treatment where you feel comfortable with your physical condition. You should not agree to resolve your case until you are comfortable with your medical treatment.
To avoid getting caught up in an unfair settlement that doesn't meet your needs, you should contact the auto insurance attorneys at Staver Accident Injury Lawyers, P. in Chicago.
