An Auto Accident Attorney in Keller TX Can Help Clients Negotiate a Fair Settlement

by | Nov 23, 2016 | Accident Attorney

Some believe that insurance companies use secret formulas to determine the amount of compensation paid on an injury claim. While a formula is used, it is certainly not secret-;and it does not actually determine how much money a victim gets. Insurers use the formula to start the claims valuation process, and final decisions are not made until all the facts are considered. Here, readers can learn how insurers use compensation formulas, and an Auto Accident Attorney in Keller TX can use that information to confidently negotiate a fair settlement.

Why is a Damages Formula Necessary?

Generally, the at-fault party and their insurer must pay for a victim’s medical care, lost income, pain, and suffering, disability, loss of quality of life and emotional damages. While it is often simple to add up losses, there is no real way to assign a dollar value to a person’s pain, suffering and missed opportunities. This is where the damages formula is helpful.

How the Formula Works

At the beginning of the negotiation phase, the insurance adjuster will add up the victim’s medical expenses. These are known as medical special damages, or “specials.” To begin calculating an award for disability, emotional damages and pain/suffering (general damages), the adjuster will multiply the specials by one and a half to three times for minor injuries, and five or more when injuries are severe, painful or permanent.

The Damages Formula and its Deciding Factors

There are two things to remember about the formula mentioned above. First, the figure from the multiplication of special damages is but a starting point in settlement negotiations. After this, the accident’s facts are considered. Second, because the starting number could be anywhere from one and a half to five times the specials, it may yield a considerably higher or lower number.

Factors Determining Which End of the Formula is Used

Several factors determine how the damages formula is applied to specials in a claim. If the injury was exceedingly painful, medical treatment was invasive, or the injury was permanent, a higher range will be used. While most insurers strive to settle claims in a fair and impartial manner, some try to pay as little as possible. For help in negotiating an insurance settlement, consider visiting  to speak to an Auto Accident Attorney in Keller TX.

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