The first step to negotiate a settlement for your car accident is to calculate a reasonable cash amount you would accept to give up legal action. Most insurance companies rely on a formula to arrive at a starting point for settlement talks to begin.
The most common formula involves a multiplier times your medical expenses to arrive at an estimate of non-economic damages, which is money for your pain and suffering. The figure is added to economic losses, such as medical bills, property damages and lost income. At that point, you have a dollar amount that you can use to negotiate with the insurance company.
One of the most contentious parts of the negotiations is what multiplier to use. To arrive at a dollar figure that could represent the value of your general damages, the insurance adjuster will add up your special medical damages and multiply them by the multiplier that is between 1.5 and 5. The multiplier can be higher or lower, depending upon the severity of your injuries. Also, how much medical treatment did you receive? Will you make a full recovery? Will you have long lasting disabilities? How have your injuries affected your daily life?
It is likely the insurance company will argue for a lower multiplier and your attorney will argue for a higher one. To have the best chance in this type of negotiation, hire a personal injury attorney in your area using the attorney finder tools on our website.