How Insurance Companies Determine Settlement Amounts

How Insurance Companies Determine Settlement Amounts

Roads in the United States are some of the busiest in the world—that also means our courtrooms get busy, too. With thousands of lawsuits filed every year, a lot of people are left wondering how the system works. If you’re curious to find out about personal injury lawsuits, read on to discover how insurance companies determine settlement amounts.

Pain and Suffering

You’ve probably heard about “pain and suffering” money because it’s the main aspect of your injury that you’ll be compensated for. “Pain and suffering” covers everything from injuries to emotional distress to psychological effects. For example, a car crash may cause you to break your arm and lead to post-traumatic stress disorder that flares up whenever you’re in a car.

These factors are both different parts of the “pain and suffering” process that the insurance company considers when determining your settlement amount. It’s easy to get bogged down with tangible costs, like your medical bills, when considering how much you’re owed for the accident. However, don’t discount the more indefinable aspects of your recovery.

Future Pain and Suffering

Car accidents often lead to many immediate effects—so many that people forget to look ahead. Serious injuries tend to have lasting side effects, whether physical or emotional. When you suffer a car accident, you may work on healing broken bones now, but what about physical therapy in the future?

The person at fault should be held responsible for all the damage they caused, not just the damage on the surface. That’s why the insurance company will also look into future pain and suffering.

Other Factors

Finally, there are myriad other factors that may or may not come up in your particular case. These can include things like loss of earnings or future earnings, personal property repair costs, or loss of personal effects. No matter what you experience, make sure you can afford to pay your bills before you get settlement money through personal injury medical funding.

Now that you know more about how insurance companies determine settlement amounts, make sure you have the proper proof and documentation for each factor. That way, you can set yourself up for the best possible settlement.