QuestionQUESTION: The property loss should be unrelated, right? Assuming the pain suffering can be multiplied the damages by 2, 3…or 5 etc. as the pain suffering, should the damages include the loss of earning or medical bills only? What does it make sense, only the medical bills or BOTH of the medical bills AND loss of earning? Thank you for your answer.
ANSWER: Hi Ray,
You are correct, the property damage is totally unrelated to the value of your injury claim.
Dealing direct with the adverse insurance company to settle minor personal injury claims, including those of the 'soft tissue' damage,
can usually be easily handled by yourself.
If your injuries involved broken bones, scaring, a long term or permanent injury that is going to have a long term affect on your lifestyle or an injury that is going to require future treatment after settlement, then you definitely need to discuss your case with a personal injury attorney. In many states, the first consultation is free, in others there is usually a $20 charge for the first 30 minute consultation.
There is NO such thing as a FORMULA that is used by the insurance industry to settle your claim.
The insurance company wants to settle for the lowest possible amount and the claimant wants to settle for as much as possible. In the final analysis, settlement is based on negotiation.
Based on personal experience and the experiences of hundreds of clients, I have found that the following method works quiet well.
Create a file of all your economic losses from this accident. This will include things such as Ambulance, ER visit, x-rays, CT scans and other tests, Medical Doctor visits, Physical Therapy visits, Prescription Drugs, your round-trip mileage at $0.47 per mile for all trips to receive treatment plus your documented wage losses.
Total all your economic losses and multiply by 3.2 and submit a written demand to the adverse insurance company for this dollar amount, along with copies of of all your economic losses.
Based on past experiences and those of other people, the insurance company will make a counter offer of 2-2.2 times the economic losses.
Through the negotiation process, most people are able to settle their claims for 2.5-2.75 times their economic losses.
If any or all of your medical bills are Chiropractic, this will severely 'skew' the above method.
The entire insurance industry is extremely anti chiropractic. This includes MediCare, Health insurance and Auto.
All Medicare policies stipulate a maximum annual payment of $1,500 for chiropractic treatment and so do a large number of private health insurance policies. If your claim involved chiropractic treatment, you can expect the insurance company to reduce it's value by about 50%, which means that their best offer is probably going to be between 1.2 - 1.5 times your total economic losses.
I hope this has been of help.
Your feedback by rating my answer will be appreciated.
Sincerely,
Bennie
San Francisco Bay Area
---------- FOLLOW-UP ----------
QUESTION: Thank you for your excellent reply. Can you answer my two follow up questions? I used my sick leave to see doctors. So there is no loss of wage but I have to do the overtime job without additional pay.
1) Can I demand the loss of wage due to the overtime job to make up the time to see doctor?
2)Assuming the total economical loss is $10,000, the insurance pays compensation $25,000, 2.5 times of the loss. Does it mean the pain suffering has already been considered; the insured cannot demand the compensation for the pain suffering additionally?
Let's talk about the minor injuries.
ANSWER: Hi Ray,
Loss of sick leave is a loss of wages because that amount of time is no longer available to you in the event of illness and you have lost that amount of monetary value from your bank of sick time hours.
A writtten statement from your employer how much money you were paid in sick time can be used as a wage loss statement.
Your entire claim is for pain and suffering. The method of using a times facor of your economic losses is to determine the value of your pain and suffering. A written demand for a stated amount includes pain and suffering. Whatever settlement that is eventually negotiated from this demand includes pain and suffering.
I hope this is of more help.
Bennie
---------- FOLLOW-UP ----------
QUESTION: Hi, your answer is helpful. I reviewed your first answer again. You said, “Based on past experiences and those of other people, the insurance company will make a counter offer of 2-2.2 times the economic losses. Through the negotiation process, most people are able to settle their claims for 2.5-2.75 times their economic losses.”
I would like to confirm it. Do you mean the economic losses are everything loss including the car total loss, car rental, property loss in a car etc. or the personal injuries and treatment related loss only?
AnswerHi Ray,
I'm sorry that there is still a misunderstanding. As stated in the first sentence of the first answer, the property damage loss (damage to the car, it's contents and car rental are not related to your injury claim (pain and suffering).
The reference to 'economic losses' means medical bills, prescription drugs, physical therapy, the cost of round trip mileage to receive medical attention and treatment plus documented wage losses.
Using your example of $10,000 in economic losses, you should be able to negotiate a settlement that includes pain and suffering for an amount in the area of $25,000 to $27,500....possibly more, possibly less, depending on the severity of your injuries and whether or not part or all of your medical bills are chiropractic. The goal of the insurance company is to pay you the least amount possible to settle the claim while yours is to get the maximum value for your claim.
The negotiation process can take a period of several weeks to many months.
Again, based on your example of $10,000 in economic losses, your initial demand would be for $32,000 or more and the insurance company would probably make a first offer of $20,000 to $22,000. During the negotiation process you will have to slowly lower your demand (a counter offer of settlement) while the insurance company slowly increases it's offer until they reach an amount that you feel is adequate or they state that $xx,xxx is their final offer, that they are unwilling to budge from and that you can either take that offer of sue them. At that time you must make a decision to settle or consult an attorney.
I hope this answer makes the process more clear.
Bennie
