How to Calculate a Settlement From an Auto Accident
As the victim of an auto accident, you are entitled to compensation for injuries caused as the result of the accident if another driver's negligence caused the accident. There is no exact formula used by all insurance companies or courts to determine a settlement amount in an auto accident case, but there are a number of steps that you can take to attempt to calculate a reasonable settlement amount.
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Instructions
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Locate the statutes in the state where the accident took place to determine what compensation you may be entitled to as a result of the accident. Individual states determine what type of damages a plaintiff can collect in an auto accident case. For instance, some states limit the amount of "pain and suffering" damages a plaintiff can collect. State statutes can be found online or at a local library.
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Determine the amount of actual damages that you suffered as a result of the accident. Actual damages are generally out-of-pocket expenses such as medical bills, lost income from days missed at work or repair costs for your vehicle.
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Decide on a pain multiplier if your state allows for pain and suffering damages. Most insurance adjusters, attorneys and other experts place a numerical value on the plaintiff's injuries in order to estimate a settlement amount. The numerical value usually runs from one (least serious) to five (serious and complicated). Occasionally, the pain multiplier is higher than five in catastrophic accidents where the plaintiff will be disabled for life.
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Multiply the total amount of your actual damages by the pain multiplier to arrive at an estimate of what the case is worth.
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References
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