When you are involved in an accident, and you obtain serious injuries, securing compensation can become a top priority. Understanding how insurers calculate the value of injury claims helps you navigate these situations with confidence. The calculation involves various factors and assumptions which include economic damages, non-economic damages, and the victim’s need for future care.

Economic Damages

Insurers view economic damages as objective costs that can easily be calculated. They include the costs of medical bills, lost wages from work, damaged property, and any out of pocket expenses related to the incident. The insurer totals all these costs to determine the monetary value of the economic damages. If you contract a pedestrian accident lawyer in Phoenix, for example, the associated legal fees would also be part of the economic damages.

Non-Economic Damages

Non-economic damages, on the other hand, are considerably subjective and harder to calculate. They represent more personal and emotional impacts, such as pain, suffering, emotional distress, loss of consortium, or reduced quality of life.

To calculate these damages, one common method used by insurers is the “multiplier method.” In this method, the total economic damages are multiplied by a number (usually between 1.5 and 5) that reflects the severity of the injuries. The resulting amount becomes the non-economic damages value.

Future Care Requirement

Future care requirement is another significant consideration in calculating the value of an injury claim. The insurer considers factors such as ongoing treatments, long-term medical care, future surgeries, or rehabilitation processes that might be necessary due to the injury. These expected future costs are factored into the final compensation value to ensure that the victim’s future medical expenses are covered.

Insurer’s Perspective

Insurers also take into account their internal guidelines, state laws, and court precedents when calculating the value of an injury claim. These factors can significantly affect the final payout figure. Hiring an experienced attorney, like pedestrian accident lawyer in Phoenix, can help ensure that the insurer’s calculation is fair and follows all legal standards.

Conclusion

Understanding how insurers calculate the value of injury claims is crucial in any accident scenario. It helps the victims make informed decisions and negotiate effectively for fair compensation. This calculation process involves various factors and assumptions, including both economic and non-economic damages, in addition to the victim’s expected need for future care. Getting professional legal help can also be instrumental in ensuring you get a fair payout following an accident.