Damages Formula - How the Claim Adjuster Puts a Value on Your Suffering...

The claim adjuster is going to put a dollar figure on your suffering. That's not an easy thing to do, but it's necessary. Without it no one would ever be compensated for anything beyond financial losses.



Some say that’s the best thing, and disagree with the idea of any form of punitive damages. The claim adjuster will agree with that point of view, since it brings costs down. But they're aware that those kinds of damages will somehow be worked into the settlement amount.

Are these kinds of damages really worth it? For the injured person collecting compensation they are. For people outside the claim though, it's often thought that these kinds of damages aren’t necessary. Some feel that the overall costs far outweigh the benefits.

Those people believe that no-fault insurance is best, since it compensates for financial losses and expenses, but doesn’t allow profit from injuries. They feel that putting a value on pain and suffering results in higher insurance settlements and higher insurance premiums. So in the end, everyone suffers.

The flipside is that not allowing compensation for punitive damages would mean people would not be held accountable for their actions. This is especially true for big business. Many people argue that without the threat of heavy lawsuits, big business wouldn't feel a need to ensure the wellbeing of others. Regardless of the controversy, your settlement will involve these types of damages at some level.

How the Claim Adjuster Puts a Dollar Value on Your Pain and Suffering...

The claim adjuster will total your monetary damages and multiply that based on the extent of your suffering. In most circumstances no insurance adjuster will reveal their exact formula, but you can figure one out yourself to use with your claim.

Say your injuries cost $6000 in medical bills, and the settlement offer is $8000. In this example, the special damages are $6000, so the extra damages are $2000. The insurance adjuster therefore felt that pain and suffering, and other non-monetary losses, were only worth one third of the special damages. There's a chance the adjuster got the impression that the injuries weren't very serious or that the suffering wasn't extensive.

In more serious injuries, and where the insurance company believes their client is 100% liable, the damage formula increases. A back injury may multiply damages twofold, while a head injury may multiply them fivefold. Again, there are no exact figures.

Another important task when determining your settlement amount is to research the amounts juries have awarded in similar injury cases that have gone to court in your area. Different counties often have different standards when it comes to court awarded damage amounts. Try VerdictSearch.com to get a feel for what what might be awarded if your case ultimately goes to court.

Understanding all this puts you in a position to figure damage amounts for yourself. Before the claim adjuster makes a settlement offer, you'll present a settlement dollar amount in your demand letter. The amount you demand in your letter should reflect how severe you feel the injuries were and how severely they affected your life.

Like the claim adjuster, you must take into account things like lost experiences and your personal suffering. You then decide how extensive they are on a small scale. This scale would usually be between one and five. If you think your damages rank a three, then multiply your special damages by three. If you think they rank four, then multiply your damages by four.

Of course, the figures can get higher in extreme cases and especially if defendant negligence was drastic. If injuries resulted from a car accident where the liable party failed to obey a stop sign that was partially obscured by a tree branch, the punitive damages won’t be as high. If the driver was street racing and missed the stop sign, then punitive damages will go through the roof.

The claim adjuster takes such things into account using their formula, and you should too. The claim adjuster is more likely to pay in extreme cases, because they won’t want a jury hearing that the defendant was street racing. In those dramatic cases, juries like to punish.

Still have questions about how a claim adjuster might determine your injury settlement amount? Click Here.


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