How is Personal Injury Compensation Calculated?

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You have been injured in an accident and you have missed time off of work, had multiple doctor’s appointments and missed precious family events. You have filed a claim with your insurance company, and you are wondering how much money you are going to get and when you are going to receive the funds.

The amount of money you will receive for your personal injury compensation depends on the cost of your medical bills, time you have missed off work, and the pain and suffering that you have experienced. California is a comparative fault state for auto insurance, and if you are the victim of an auto accident you will have to clearly establish to the other driver’s insurance company that their client is responsible for the accident. If you are both partially responsible, you will be compensated to the extent that the other driver was responsible. If you caused twenty percent of a crash and the other driver caused eighty percent of that accident, you may recover eighty percent of the damages associated with the collision.

How Pain and Suffering is Defined

The legal term for pain and suffering refers to all the many injuries, both physical and emotional that a person may suffer as a result of an accident. Experiences such as insomnia, anxiety and a general loss of enjoyment of life can all be considered pain and suffering, by legal definition. But how do you put a price on someone’s emotional reaction to a traumatic event? Insurance companies have a couple of different formulas that they use to determine a dollar amount.

The Multiplier Method

One formula that insurance companies use to ascertain a settlement amount for pain and suffering is called the multiplier method. This method multiplies the plaintiff’s quantifiable costs,  such as medical bills and lost wages, by a number that is between 1 and 5. The multiplier will be decided by the severity of the damages and injury. If someone had medical bills that totaled $1000 and the multiplier was 2, They would receive $2000 for pain and suffering.

Per Diem

Per Diem means “per day” in Latin. This formula for calculating pain and suffering awards an individual a certain amount of money per day for all of the days that they actually suffer as a result of the accident. Often, the amount of money is determined by how much money a person makes in wages in a day. If a person makes $200 a day and it takes them 10 days to recover, the amount of their award would be $2000.

Negotiating with Insurance Companies

Chances are, the at-fault driver’s insurance company will try to lowball you when they offer you an initial settlement amount. Insurance companies have teams of lawyers whose job it is to keep their money in-house. Unless you are an attorney, you are unlikely to have the know-how to negotiate with insurance companies. You need the assistance of an experienced personal injury law firm, such as The King Law Firm. A good attorney can get you the money you deserve, so you can recover from your accident and move on with your life.

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