When you’re injured in a car accident due to someone else’s negligence, you can pursue legal action against the responsible party to seek monetary compensation for the damages you’ve suffered. Knowing your legal rights after a collision is crucial, as you may be entitled to significant compensation. Car accident settlements can vary greatly because each value is based on the unique factors of the accident. This includes the severity of your injuries, vehicle damage, the number of people injured, and other factors that can radically change the settlement amount. Many victims wonder whether there is a universal method that insurance companies use to calculate car accident settlements. Please continue reading to learn how car accident settlements are calculated in New Jersey and how a determined Essex County Auto Accident Attorney can help you fight for the just compensation you deserve.
Is there a universal method to calculate car accident settlements?
Firstly, two main categories of “damages” are available to injured parties in personal injury cases: economic and non-economic damages. Economic damages are easily calculable losses stemming from your accident and injuries. This typically includes your past and future medical bills, lost wages, property damage, household services, vocational rehabilitation, and other out-of-pocket losses. Non-economic damages, on the other hand, are not calculable losses as they don’t have an “invoice” to prove their value. Essentially, they represent non-monetary losses. This includes pain and suffering, emotional distress, inconvenience, loss of enjoyment of life, and other subjective losses. It’s crucial to understand the compensation that may be available to ensure you receive the maximum compensation to which you’re entitled for the damages you’ve endured due to another party’s negligence.
Insurance companies have formulas they rely on to determine the value of a car accident settlement. While there’s no universal formula, insurance adjusters typically use the “multiplier” method based on your medical expenses to calculate non-economic damages. Essentially, they total your economic damages and multiply that number by a factor between 1 and 5, representing the severity of your injuries. A multiplier of 5 typically represents permanent, life-altering injuries.
What is the “per diem” method?
When your injuries are less severe, insurance adjusters may use the “per diem” method to determine the value of your car accident claim. This approach essentially demands a specific dollar amount for every day you have to live with the pain caused by the accident. This method calculates the daily rate of your pain and suffering and multiplies that number by the days it takes you to reach a complete medical recovery. For instance, if you experience pain and suffering for 100 days at a daily rate of $400, the settlement amount for your non-tangible losses would amount to $40,000.
If you’ve been seriously injured in a car accident, please don’t hesitate to contact a knowledgeable Essex County auto accident attorney. At the Law Offices of Christopher T. Howell, Esq., we understand that all accident cases must be handled with individualized attention. We are prepared to fight on your behalf to maximize your chances of attaining the maximum compensation you deserve and need to get back on your feet.
