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A negotiated accident settlement varies depending on everything from injuries involved to how the adjuster may feel that day. Only about twenty percent of all settlements involving auto accidents go to court. However, estimating a settlement value discussed between the accident victim and the insurance adjuster still has many factors to consider.
Multiplier
Method
The simplest method of estimating an auto accident settlement is by adding up all medical expenses, multiply the total by 2 to 3 times and then add all other expenses such as car damage for accident car compensation. This settlement money isn't what you get to stick in your pocket. Car repairs and rentals must be paid for. Doctor bills, attorney costs, towing services, and other damaged goods charges must be subtracted from this settlement money.
The purpose of an auto accident settlement is to make you whole. Extra money beyond tangible repair costs and other bills is what is intended to make up the difference in what can't be fixed with money.
The multiplier varies by area.
Until about 2001, a car accident settlements and injuries were roughly figured with a 5 to 6 times multiplier, but times have changed. Most areas are paying out less to about 2 to 3 times injuries.
What is involved in the final determination?
First, rarely take the initial offer given by the adjuster. The adjuster isn't a mindless calculator attempting to give you the lowest amount you will accept, but that figure will appear that way. An auto accident settlement in an adjuster's office is evaluated and given a settlement range before you even speak with the adjuster. The first offer you get is most often near the bottom.
Don't feel insulted or get irritated. That's just how the business works. Wait a few weeks before calling the adjuster back to explain just why this original figure isn't sufficient.
The top of a settlement range is called the Authority. That's the highest figure assigned by the insurance company that the adjuster isn't permitted to exceed without further approval. Of course, the adjuster won't tell you that figure, but when your counter offer exceeds that figure, you'll hear her say "That exceeds my Authority."
Dan's formula helps you put a monetary value to "pain and suffering."
If you have been in a car accident or know someone who has been in a car accident then the BASE settlement formula can help you know the authority payout range of your insurance agent.
The leading expert auto accident settlement negotiators also provides a detailed settlement formula called the BASE formula by Dan Baldyga. Dan's formula helps you put a monetary value to "pain and suffering." Look a this book for more information about the BASE Formula and How To Evaluate And Settle Your
Loss.
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