How Much Is Your Personal Injury Claim Worth?

Figuring out how much your claim is worth can be tough. There are so
many things to consider: doctor's bills, time lost from work, medical
costs for ongoing injuries, pain and suffering, and so on. Insurance
companies consider all of these factors when deciding how much to
offer -- and ultimately pay -- for a personal injury claim.

Here's how insurance companies determine the value of your personal injury claim:

Figuring out how much your accident injuries are worth is a critical
aspect of any personal injury claim, and it's the part of a claim that
is most difficult to determine; the amount varies depending on your
very particular circumstances. Here is an overview of how insurance
companies determine the value of a claim.

What an Insurance Company Must Compensate

To determine what your claim is worth, you must first know the types
of damages for which you may be compensated. Usually, a person who is
liable for an accident -- and therefore his or her liability insurance
company -- must pay an injured person for:

• medical care and related expenses
• income lost because of the accident, because of time spent unable to work or undergoing treatment for injuries
• permanent physical disability or disfigurement
• lost household services
• loss of consortium
• loss of family, social, and educational experiences, including missed school or training, vacation or recreation, or a special event
• emotional damages, such as stress, embarrassment, depression, or strains on family relationships -- for example, the inability to take care of children, anxiety over the effects of an accident on an unborn child, or interference with sexual relations, and damaged property.

Percentage of Fault

The extent each person is at fault is the most important factor
affecting how much the insurance company is likely to pay. The damages
formula gives you a range of how much your injuries might be worth,
but only after you figure in the question of fault do you know the
actual compensation value of your claim -- that is, how much an
insurance company will pay you.

Determining fault for an accident is not an exact science, but in most
claims both you and the insurance adjuster will at least have a good
idea whether the insured person was entirely at fault, or if you were
a little at fault, or if you were a lot at fault. Whatever that rough
percentage of your comparative fault might be -- 10%, 50%, 75% -- is
the amount by which the damages formula total will be reduced to
arrive at a final figure.