After suffering a personal injury, you're due for compensation. But what affects the value of your insurance settlement after making an injury claim?
Accidents are a common occurrence in the United States.
If you’ve sustained a personal injury, the first cause of action is to seek treatment.
If you’ve sustained a personal injury, the first cause of action is to seek treatment. After that, if another party was at fault, you ought to sue them for compensation. And in most cases, you’ll receive a settlement from their liability coverage providers.
But what affects the value of your insurance settlement after filing an injury claim? We’ve got the answers you’re seeking.
The Severity of Your Personal Injury
A severe injury will cause you lots of physical pain and emotional distress. It’ll also cost you a lot of money in medical expenses. If you’ll no longer be productive, you could lose your income until you’ve recovered and able to work.
As such, the severity of your accident will have the biggest impact on the value of your insurance settlement. For instance, if you’ve spent $5,000 on healthcare bills, the value of your settlement cannot go below this amount.
This is why you’re strongly advised to keep accurate records of your medical reports and bills after suffering a personal injury.
Besides the economic-damages (medical bills and lost wages, for instance), there are non-economic damages, such as pain and suffering and emotional anguish. However, unlike economic-damage which can be computed easily, there’s no straightforward way of calculating non-economic damages.
In most cases, a multiplier will be applied. The average multiplier is 1.5, which means if your economic damages amounts to $10,000, your non-economic damages will be in the region of $15,000, bringing your total payout to at least $25,000.
The multiplier can change, depending on the nature of your injury.
Your Lawyer’s Cut
When you’re seeking personal injury compensation, you’ll certainly hire a personal injury attorney to guide and help you.
If you do this, you’ll have to pay the lawyer, which is something that’ll affect the value of your settlement. Most personal injury lawyers charge a contingency fee, and the standard rate is 33 percent of the settlement amount.
So, if your personal injury claim results in a $50,000 insurance settlement, your lawyer will take about $16,500. This significantly reduces the amount you finally end up with.
It’s obvious that pursuing a settlement without the help of a lawyer will ensure you get as much money as possible. However, not hiring a lawyer can be a big mistake, which can see you get an even lower settlement.
Dealing with insurance companies isn’t a pleasant thing. They aren’t going to happily accept your claim and cut you a check. Any insurance company will want to pay you as little as possible.
An injury lawyer knows how to handle insurance companies. They will ensure the settlement amount is what you deserve. Even if they will take a portion of it, chances are high you’ll get the best deal with a lawyer on your team.
Get the Insurance Settlement You Deserve
An insurance settlement might not ease your pain and trauma, but at least it’ll provide the funds you need to pay your bills and meet other financial obligations. However, there are a couple of factors that will influence the amount you eventually receive. With this guide, you now know these factors.
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