How Do Insurance Claim Adjusters Determine Their Compensation Offers?

by allan46 on October 25, 2011

If you have been involved in an accident and make a claim for personal injury compensation one of your goals probably is to get as much money as you can. However, the defendant’s insurance company’s goal is to prevent you from doing that. They want to pay you as little as possible.

Even when you factor in things like punitive damages and pain and suffering, whatever settlement is ultimately arrived at is usually related directly to your present, future, and past medical bills.

How Much Compensation Do You Deserve?

It isn’t easy to calculate the total dollar amount of your damages. That’s because it usually necessitates that you put a dollar value on things that usually aren’t associated with any monetary standards.

Therefore you will need some way to find a realistic dollar value for your personal injury compensation claim.

Why don’t we take a look at how insurance adjusters arrive at their settlement offers for pain and suffering? This way you can use this knowledge in order to increase their number.

Although it’s not an easy process, suing for pain and suffering is a necessary component of your personal injury compensation lawsuit.

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How Does the Insurance Claim Adjuster Put a Dollar Amount on Your Pain and Suffering?

Although insurance adjusters don’t usually reveal their exact formulae, most claim adjusters total up your monetary damages and then use a multiplier. They determine the multiplier by what they perceive to be the extent of your pain and suffering.

When they propose an offer you can then back-engineer the offer to determine what multiplier they used.

So, let’s say that the medical bills for your injuries are $8,000 and the settlement that is offered is $10,000. Because the extra damages amount to $2,000 the insure adjuster felt that all of the non-monetary loses, including pain and suffering, were worth 25% of the special damages.

Because the multiplier is so low there may be a pretty good chance that the adjuster believes that your injuries were not very serious and/or the suffering was not very extensive.

When injuries are more serious, or if an insurance company believes that their client was 100% at fault, the amount they are willing to award for pain and suffering might increase.

For example, although there aren’t any exact figures, back injuries may merit a 200% increase in damages while head injuries could warrant a 500% increase in damages in the eyes of the insurance company.

In most instances the medical costs are multiplied by a factor between one and five. In extreme cases the multiplier can be higher, especially if the defendant’s negligence was drastic.

The amount that you demand should be a reflection of the consequences of the bodily injuries on your life and the severity of your pain. Like the adjuster, you should also take into accounts the experiences you will lose.

Because so much is at stake most people hire a personal injury attorney to represent them in personal injury claims. The majority of these attorneys work on a contingency basis, so it will not cost you anything if they do not win your case.

And to find out more about personal injury compensation go to http://www.sokolovelaw.com/ Wendy Moyer on behalf of Sokolove Law.
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