What The “Damages & Compensation Formula” Means For Your Case
If you’ve never been involved in a personal injury lawsuit, then you probably have a lot of questions about how these cases work, including how the insurance company determines your final claim amount. If you’ve heard about a certain formula that insurers use to calculate claim amounts, then you’re well on your way to understanding this important area of personal injury lawsuits.
In order to come up with your claim amount, insurance companies rely on what’s known as the damages and compensation formula. Fortunately, the formula is very simple to understand, and once you learn how it’s used, you’ll have a better idea of the potential level of compensation you’ll receive. Discover how the damages and compensation formula is used and how it will affect the final amount of your Nashville personal injury claim.
Basics About the Formula
The first thing to learn about the damages and compensation formula is why it exists in the first place. Basically, this formula allows insurance companies to get a better idea of the compensation you might be entitled to after a serious injury. While it can be easy to calculate the amount deserved for missed work and medical expenses, determining the worth of issues like mental suffering and lost the quality of life can be much more difficult.
However, thanks to the damages and compensation formula, your insurer will be able to take into account every area that your injury affected and come up with an accurate and fair claim amount so that you can recover more effectively.
Applying the Formula in Your Nashville Personal Injury Claim
After learning the reason that the damages and compensation formula is so crucial in determining your claim amount, it’s time to examine how the formula is calculated and what factors will influence your ultimate claim amount.
The first number that will be used in the formula is called medical special damages, and as you might expect, this number is comprised of the medical expenses you’ve incurred as a result of your injury.
The second number is a little more complicated and is called general damages. General damages are the less concrete effects of your injury, such as a reduction in quality of life and mental effects. In calculating general damages, your insurer will multiply your medical special damages by 1.5 to 5 times, which is determined by the severity of your injury. The more severe your injury, the higher the multiplication number.
Finally, your insurer will add your medical special damages, your general damages and the income you’ve lost for missing work to come up with your final claim amount number. Although your insurer usually won’t disclose their particular method for using the formula, understanding the basics should give you a general idea of what your Nashville personal injury claim might be.
Work Towards Your Rightful Compensation
If you want to make sure that your Nashville personal injury claim reaches the amount that you need and deserve, then you need help negotiating with your insurer from the professionals at Mitch Grissim & Associates. Using our legal knowledge and experience, we can negotiate on your behalf and make sure that you get the right level of compensation. Tell us about your case today so that we can start fighting for you.