Unfortunately, despite a driver taking every precaution to mitigate the risk of being involved in a car accident, collisions can still occur due to another motorist’s negligence. These incidents can lead to catastrophic injuries that can significantly alter the course of one’s life. Although we can’t turn back the clock, it’s crucial to understand your legal rights, as you may be entitled to significant compensation for the damages you’ve incurred. It’s vital to recover compensation for the injuries you sustained to alleviate the financial burden associated with the aftermath of the accident. In such situations, it’s imperative to clearly understand how car accident settlements are calculated to ensure you receive a fair amount for your losses. If you have suffered injuires in a car accident due to another driver’s negligence, it’s in your best interest to contact a dedicated Birmingham Car Accident Lawyer who can fight for the maximum compensation you’re entitled to for your damages.

Is there a specific car accident settlement formula?

Generally speaking, insurance companies have formulas that they rely on to determine car accident settlements. While there is no universal settlement formula, insurers often use a “multiplier” method to estimate the value of a car accident claim. The multiplier method takes the economic damages you’ve incurred and multiplies that amount by a factor number, typically between 1 and 5. This number represents the severity of your injuries. The total number after the multiplication is added to the economic damages you’ve suffered to determine your estimated settlement.

This method is used less frequently than the multiplier approach, but insurance companies will use the “per diem” method if your injuries are less severe. This method takes a certain amount of funds per day, multiplied by the days you take to complete medical recovery. For instance, if you’re awarded $200 per day for the 80 days it takes you to recover from the injuries you’ve incurred entirely, you will be able to recover $16,000.

Should I speak to an insurance adjuster?

Following a car accident, an insurance adjuster will likely approach you and offer you a settlement. They typically approach victims before they’ve had a chance to consult an attorney to get them to accept a lowball settlement before they learn how much their claim is worth. It’s crucial to keep in mind that anything you say to an insurance adjuster can be flipped and used against you to minimize your award. To maximize your chances of recovering the maximum compensation you’re entitled to, consult an experienced attorney who can negotiate the fair settlement you deserve.

If you’ve been seriously injured in a car accident, please don’t hesitate to contact an experienced Birmingham car accident lawyer, who can help you fight for the just compensation you deserve and need. We are prepared to represent your interests today at Alabama Personal Injury Lawyers, LLC.