Auto Accident Settlement Formula

Although there is no exact formula to determine the value of an auto accident settlement, insurance adjusters do have roundabout methods of coming to an estimate. Every incident is unique, but there are many common variables. Oftentimes, adjusters will base their estimates on special damages.

Special damages are financial damages that equate to a dollar amount, like medical expenses, lost wages, and property damage. Insurance adjusters take that dollar amount and multiply it by a certain factor; the assumption is that higher medical bills and more lost wages indicate a more severe injury or a lengthier recovery process, so they qualify for a higher multiplier. A small number of special damages might warrant a multiplier of 1 or 2, for example, while a lengthy hospital stay or severe injury may call for a multiplier of 4 or 5.

However, this is just an estimation—this “formula” doesn’t take other variables into account.

To get a more accurate estimation of the value of a case, you have to look at individual factors. Some of these factors include: 

• The severity of the injury—and whether the accident caused a new injury or exacerbated an existing problem
• When you sought medical attention for your injury—was it immediate, or did you wait?
• Nature and duration of treatment—insurance companies might not cover the full cost of recovery if they believe the treatment was “excessive”

This is far from an exhaustive list of factors, and insurance adjusters will do whatever they can to devalue your injuries and pay less than the amount you’re owed. When this happens, Morgan & Morgan’s auto accident attorneys can help you fight for the full value of your claim.

It’s easy to get tricked by insurance companies, especially when you’re already dealing with the physical and emotional stress of an auto accident. However, our experienced lawyers recognize their methods and will build the strongest possible case in order to combat them.

Your auto accident attorney will:

• Gather and review medical records, insurance policy information, and all pertinent documentation
• Thoroughly investigate other sources of evidence such as security camera footage and eyewitness reports
• Negotiate with the defense to reach a fair settlement
• Prepare the case for trial (if a fair settlement cannot be reached)

When you work with Morgan & Morgan, you never have to worry about how to afford a lawyer. We work on a contingency basis, meaning we don’t get paid until we successfully resolve your case. Then, our fee comes out of the settlement or verdict winnings, so you never pay out of your own pocket.

At Morgan & Morgan, we’ve seen the devastation that an auto accident can cause for victims and their families, and we’re here to help make things right. We fight For The People, Not The Powerful, and we fight for full and fair compensation—not a cent less. To that end, we’ve recovered $15 billion for our clients across all practice areas.

Have you or a loved one been injured in an auto accident? Don’t wait to contact Morgan & Morgan. Fill out a free, no-risk case evaluation form to see if you have a case.