How does an Insurance Company Decide How Much Compensation to Offer on a Personal Injury Claim?
One of the most common questions asked of me by new clients is, “How much is my case worth?” It is a fair question, but one that an honest lawyer will refuse to answer at an initial client meeting. What I do tell the new client are the factors that go into the evaluation of a personal injury claim, but at the time of a first meeting there is not enough information available to give an opinion on value.
If the case involves, as is most common, an automobile accident, the insurance adjuster will take a careful look at the severity of the crash. If it is merely a fender-bender, then you can count on the fact that the offer will be dismally low. Insurance adjusters place great stock in how severe the crash looks in photographs.
Another important factor is the level of injury. The lowest compensable type of personal injury claim involves what are called “soft-tissue” injuries. These are injuries that involve muscle sprains and strains and not broken bones. If you have a minor damage traffic accident and soft-tissue injuries, your compensation will quite likely be extremely low.
If an accident results in broken bones, then the level of compensation will rise significantly, particularly if the broken bones result in surgery. If the fractures occur in the dominant hand, then compensation will be higher than the non-dominant hand. If the injuries are serious enough to require hospitalization, then again compensation will be increased substantially.
The most highly compensated types of injuries would include brain damage, serious burns, and spinal cord injuries resulting in paralysis.
One of the things that your attorney will want to determine right away is the available insurance limit. Virtually no plaintiff personal injury lawyer wants to become a collection lawyer and will not typically take the case where there is inadequate or no insurance. Even if you have a very serious injury claim, if the insurance policy limits are low, you may very well be stuck with that as your compensation.
Other factors that go into personal injury evaluation by insurance companies include any disability resulting in loss of income, any permanent physical or mental disability, and any case that involves a drunk driver or grossly negligent person.
Obtaining fair compensation for personal injury is difficult. Insurance adjusters are professionals hired by insurance companies to keep claims payments at the lowest possible level. You will be at a significant disadvantage if you have a serious injury claim and are not represented by a competent attorney. Virtually all personal injury attorneys work on a contingency fee contract, which means that you will not pay any fees unless and until your case is successfully resolved.