There is no secret formula to determine the exact amount of money you can get after encountering an accident. Nevertheless, there are ways to estimate how much you can receive. Most people assume an estimate that the compensation they get should be at least three times more than their medical bill.
Selecting an Attorney
An attorney will usually take 1/3 of the settlement amount. This is why it is important that the expenses are itemized and all the receipts and bills are kept for recording purposes. If you do not want to hire an attorney, you can always try to settle your issues by contacting the insurance company.
However, you should expect to get below-average compensation since one of the goals of all insurance companies is to provide you with the least amount possible. The insurance company might argue that you have very expensive medical bills or that you got unnecessary treatments. Therefore, it is important to follow all your doctor’s recommendations for treatment and missed days of work.
The Cost of your Compensation
In order to determine your settlement value, you should add your medical bills and income lost from your absence of work, the value of your pain and suffering, the cost of car rental, and your auto repair bills. It is easy to claim to the insurance company your medical expenses, car repairs, and income lost. However, it would be a challenge to know much you are entitled to your pain and suffering.
Use the Multiplier Method
One of the most common methods in estimating these damages is to multiply the expenses of your medical bills with your loss of income by an arbitrary multiple between 2 and 4. To make this clearer, if you had a neck injury that was caused by a car accident and your bills were around $5,000, and you have already missed two weeks of work that cost you $3,000, then the total of your expenses are $8,000. Depending on the other aspects of your case, the total settlement value is somewhere between $17,700 and $34,000.
Use the Per Diem Method
Another method to determine your pain and suffering value is by providing it with a per day rate and adding it to your expenses. If you use the example above, your total expense is around $8,000. If you received neck injury treatment for three months and still experience pain for 2 months after the treatment, you can assign an amount on each day that you suffered from the injury. In this case, it would be your daily job allowance for around five months.
Use Both Methods
Using the two techniques will give you the best approximation for your settlement. Typically fenders benders cost around $500 to $3000 and major accidents could be worth $15000 to $35000.
If you decide on using a lawyer to make a claim, it will cost you a percentage of your settlement. Your settlement will probably be larger, so it may be worth it.