How Insurance Companies Calculate Car Accident Settlements

After a car accident, filing an insurance claim is often the first step toward recovering compensation for damages. This support can ease the financial strain, especially when another driver causes the crash. When preparing to file, it’s natural to have questions like: “How do they calculate my settlement?‘ or “Will their offer reflect everything I’ve been through?”

Knowing what insurers consider when determining a settlement can help you prepare a well-supported claim. Learn their methods for calculating claims and how our experienced Appleton car accident lawyers can help you win maximum compensation.

Understanding Settlement Calculations in Car Accidents

Insurance companies analyze several factors to calculate the claim’s total value when determining a car accident settlement. Partnering with an experienced attorney early on can ensure these factors are fully documented and accurately represented in your claim. Here’s what adjusters typically evaluate: 

• Injury Severity: Insurers consider the type and extent of injuries, including whether they result in long-term disability or chronic pain. Severe injuries, like brain trauma or spinal cord damage, often lead to higher settlements due to increased medical costs and the emotional toll.
• Vehicle Damage: Adjusters review repair estimates and assess whether the car is repairable or a total loss. The more extensive the damage, the higher the compensation for repairs or replacement.
• Medical Costs: Insurers review records of treatments, including emergency care, surgeries, and rehabilitation, to understand the scope of medical expenses. Settlements typically cover these costs, providing relief from immediate financial stress.
• Other Considerations: Insurance companies may include compensation for lost wages and pain and suffering. Lost wages cover missed paychecks during recovery, while pain and suffering addresses emotional and physical challenges, such as anxiety, depression, or chronic discomfort.

How Insurance Companies Determine Compensation

Insurance adjusters use specific methods and legal guidelines to determine settlement amounts. They often use formulas to evaluate damages and factor in state laws on comparative negligence to refine the final offer. Here’s a closer look at how these tools are applied:

The Importance of Documentation

Insurance companies base their settlement calculations on the evidence submitted by each party. Strong documentation can increase your chances of receiving a fair and accurate settlement.

Gather these essential items after a crash to maximize your chances of getting full compensation:

• Invoices and receipts for medical treatments, prescriptions, and therapy to show your expenses and support damage calculations
• Pay stubs or employer statements to document missed income and any future earning limitations
• Repair estimates or invoices to establish the cost of vehicle damage or replacement
• The crash report for an objective account of the accident, including fault determination and witness statements
• Photos or videos of the accident scene, vehicle damage, and injuries to visually support your claim
• Medical records, such as treatment plans or doctor’s notes, highlighting the severity and long-term impact of your injuries
• Receipts for transportation costs, assistive devices, or other out-of-pocket expenses caused by the accident
• Witness contact details or statements to support your version of events

Beware When Talking With an Insurance Adjuster

Insurance adjusters are skilled at protecting their company’s bottom line, often using strategies to minimize payouts. Here are some common tactics they use to undervalue claims:

• Downplaying Injuries: Adjusters may argue that minor injuries don’t require extensive treatment or question the severity of injuries like whiplash if you delay seeking care. This allows them to offer less for medical expenses and pain and suffering.
• Quick, Lowball Offers: Adjusters may offer an immediate settlement to cover only short-term costs, ignoring long-term needs. Accepting too quickly might leave you without funds for ongoing medical care or lost income.
• Shifting Blame: Assigning partial responsibility to you reduces the final payout under Wisconsin’s comparative negligence laws. For example, if they claim you were speeding during a crash, it can lower your settlement by the percentage of fault assigned to you.
• Requesting Recorded Statements: Recorded interviews may seem routine but are often used to find inconsistencies or downplay your injuries. For instance, casual remarks like “I feel fine” can be misinterpreted to weaken your claim.

At Brian Hodgkiss Injury Lawyers, our experienced car accident attorneys know how to counter these tactics. We gather evidence to strengthen your claim, manage all communication with insurers, and negotiate assertively to ensure you receive a fair settlement. If necessary, we’re fully prepared to take your case to court.

With our team on your side, you can focus on your recovery while we handle the legal challenges and advocate for the compensation you deserve. Contact us today for a free consultation.

Work With Trusted Appleton Car Accident Lawyers

If you’ve been injured in a car accident, don’t let insurance companies undervalue your claim. Our legal team knows the tactics adjusters use and can fight to secure the full financial support you need for peace of mind.

We account for all damages in your claim, including lost income and future medical costs. Trust our Appleton car accident lawyers to manage the details while you concentrate on rebuilding and moving forward.