How Much Is Your Injury Worth? Most People Are Unaware of How Insurance Companies Calculate Settlements
Interviewer: When people call you and they say, “Oh, I’ve been injured. I think I am entitled to money.” How often are they under some kind of misconception on how much they’ll get and if they’ll get it?
The Insurance Companies Uses Multiple Factors When Calculating Settlement Offers to Injured Parties
Adam: I think the biggest misconception would be is that what the insurance companies will offer is just going to be a flat, predetermined amount. There is going to be a basis for the calculation, and again, it’s going to factor in several things: loss of pay, loss of consortium, and it’s going to factor in how much the medical bills are.
Instead of just thinking that, “I had a broken arm,” and assuming that the settlement amount would be based on that medical bill, there will be a calculation based on as well as several other factors.
Interviewer: Are there any other misconceptions people have about car accidents or auto accidents?
Read Your Insurance Policy: Do You Have Underinsured or Uninsured Motorist Coverage?
Adam: Sometimes they might not realize that if they have underinsured or uninsured motorist coverage on their policies, that that’s another source of possible money for them.
After an Auto Accident, Which Insurance Company Do You Contact about Your Injuries? Your Insurance Company or the Other Party’s?
Interviewer: What happens in a case? Do you contact your own auto insurance first to cover your injuries, or do you go after the other person’s first? What happens when one has exhausted both possibilities?
It Is Advisable to First Contact the Other Party’s Insurance Company
Adam: You start with the other person’s, and then it depends on how the insurance company wants to proceed. Sometimes they’ll offer whatever they believe is the appropriate amount and then they’ll sue on the behalf of the person that was injured.
Other times, they’ll just not make that offer and let the attorney’s go ahead and make the filings. Whatever the verdict would be at the end the case, they would award that amount.