QuestionQUESTION: Hi,
I was reading on http://www.autoaccidentclaims.com that you can include the car rental as part of your injury settlement. Actually the formula on this website is using it.
The rental car was already paid by the insurance company, so my question is, can I include it in the math for the settlement? It was about $2000, so if I get twice the amount for rental it will be pretty good.
Thanks,
Adi
ANSWER: Dear Adi,
Why don't you send your question to the author of that site, Mr. Dan Baldyga? I have no idea what he would say, since I am NOT a proponent of the Baldyga "secret" BASE formula. (Well, he called it "secret" to sell books, until it became apparent that it was common knowledge, so I do not think he calls it "secret" any more.)
This is the so-called "formula" of Dan Baldyga, a long-ago retired insurance adjuster who has never in his live settled a claim using the computer software that is now in use. I am sure that Mr. Baldyga did have some good ideas long ago, but one wonders if they have not been overtaken by changing times in the decade since he retired.
He has a website from which he sells his book, and he writes articles touting his "secret" B.A.S.E. "formula" for settling claims. Maybe he has some other ideas of merit in his book, but this BASE thing is NOT among them. Once it became apparent that this was no real "secret", inasmuch as anyone in the business knew that years ago it was somewhat relevant, Dan stopped using that as a sales tactic and actually put it out in articles he has written.
Here is a link to his website, where you can try out the so-called formula and buy his book if you wish: http://www.autoaccidentclaims.com/index.asp.
Here is his bio page, in which he neglects to tell how many years ago he last saw a real live insurance claim. He is hitting his mid-seventies now, so you do the math on that. http://www.autoaccidentclaims.com/bio.asp. No doubt Baldyga is a very nice man, with formerly-relevant knowledge of how things USED to work in this business.
As for me, there are a great many factors that influence value, and the rental car cost IS NOT AMONG THOSE.
Valuation is not like going to a drive-in for a fast food meal. It takes time and study of many factors, including of course liability and medical records, but also an evaluation of the plaintiff—what kind of person will she present to the jury is a most important consideration (i.e. is she credible, does she elicit empathy, etc.).
A common theme among those who still think a formula will put you in the valuation ballpark is to multiply the medical specials times a number from ONE to FIVE (depending upon factors, some of which I will give you later—or all of which are listed in the members' side of my website, www.SettlementCentral.Com). Then that figure is the total value of the personal injury portion of the claim. Of course there is a long list of factors to consider for adding or deducting from the total.
LONGER ANSWER:
Here are some of those factors (as set forth in MORE DETAIL IN the members' section of http://www.SettlementCentral.Com, Dr. Settlement's website):
There are changes in the formula approach, DEPENDING UPON SERIOUSNESS OF INJURIES.
The typical formula approach you mentioned to determine the value of general damages, i.e. pain and suffering, permanent disability and emotional damages, is to multiply the amount of the MEDICAL specials by a factor between 0.5 and 3 if the injuries are relatively minor or continue less than one year, or by a factor of 4, 5, or more when the injuries are very painful, serious, long-lasting or permanent. You have not mentioned the lost income component, but if incurred, it is added on at the end.
Once the computations called for above are completed, add another 50% of the total to determine the starting amount for beginning negotiations on the total value of the compensation due you on your claim.
Here is a listing of factors that will affect both the multiplier you will use, as well as the value of the claim inasmuch as they will increase or decrease the product of your multiplication.
1. LIABILITY DISPUTE & comparative negligence
This is a big one because it most dramatically affects value: minus if you have any fault.
2. Trauma suffered
The value of your claim increases with a bigger crash, and decreases with a low damage fender bender. Why? Just human nature.
Therefore, the total value of the property damage (e.g. cost to repair or replace a motor vehicle) becomes significant.
3. Medical special damages
Cost of medical and related health care expenses; higher costs usually equate to an increase in value (excepting, of course, cases of gross overtreatment). Your treatments must be “REASONABLE AND NECESSARY”.
4. Type of injury
Where does the injury fall within the insurance industry's "hierarchy list" of valuing injuries? Irrespective of which injury may cause more pain, injuries are valued according to seriousness, tendency to be persistent or permanent, and whether or not they need objective proof to be believed (e.g. a broken bone versus soft tissue strain).
5. Type of medical care
Where does the medical care fall within the insurance industry's "hierarchy list" of valuing medical care? Orthopedists at the top, chiropractors near the bottom.
6. Prognosis- future care—permanency of injury or pain and suffering—or were you done treating 4 months ago?
Your claim value gets a boost if your doctor specifies that you will need some future medical care.
7. Your medical and claims history, prior accidents, prior injuries or treatment of the same area of the body.
8. Impairment of quality of life.
9. Quality and persistence of pain suffered.
10. Quality and thoroughness of your medical records.
11. Lost wages.
WHERE DO YOU GO FROM HERE? Given all that above, maybe you could use a good solid doctor's narrative report to tie things together and to get you some future medical costs added in at this time.
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#5. DEMAND LETTER—COMMUNICATE IN WRITING
I want you to be an effective communicator of your demand for settlement. Don't just call up the adjuster and start discussing your demands. Instead take the time to make your own demand letter—that is one step that will really pay dividends for you. I cannot tell whether or not you sent a formal demand letter. But it is best to think about that now if you did not.
Write Effective Personal Injury Insurance Demand Letter http://www.settlementcentral.com/page0170.htm
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#8. FINAL TOPIC: Effective communication with insurance claims adjusters. Establish Firm, Professional, and Positive Relationships With the Insurance Injury Claims Adjuster http://www.settlementcentral.com/page0059.htm
Always communicate with the adjuster in writing, showing your own analysis of value. It is OK I guess to have one call or so, but no more. Always have your information and ammunition in writing to give to the adjuster.
Let him know that you are FIRM IN YOUR RESOLVE to get what you are demanding (NOT "asking", since that invites a counter-offer, but instead "demanding" as fair and reasonable compensation) by asking him what the options are to resolve the matter fairly should he not agree to a reasonable claim value. In other words, let him know that you will go through with a court filing if need be.
Remember these tips, do your homework, print out your evidence, show resolve to get your fair settlement, and you will DO JUST FINE.
I trust that my extra time here has produced some information that has been of value to you, and thus I would respectfully request that you take the time to locate the FEEDBACK FORM on this site and leave some feedback for me.
Best Wishes,
Dr. Settlement, J.D. (Juris Doctor)
http://www.SettlementCentral.Com
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QUESTION: Thank you Dr. Settlement for your time.
Everything you told me is true, I've been reading all this information in various places, but all the information I could find was just general information.
Of course, everybody says that the settlement depends on many factors, starting with the amount of medical expenses, type of injury, etc. What I need is just a simple, clear answer that is particular for me. So if you can please please give that straight answer it will help me a lot and I would appreciate it.
Here are the facts:
1. Accident happened 1 year ago, on Memorial week-end. The damages to my car were $11,500.
2. After 1 year I am still in pain, I have to take frequent stops from work to perform stretches and even take walks.
3. The totals for my medical treatment were $4,920:
Hospital exam: $90
Prescriptions: $10 (my insurance paid the rest)
Chiropractic care (about 4 moths): $4,470
Mileage reimbursement: $350
4. The chiropractors narrative report still shows as having some problems, but also states that chiropractic care has reached a maximum of healing.
5. I had lost money in the amount of $1,500 by taking time off from the office, travel around to take care of my car and my treatment, etc.
Taking all this, I sent a demand letter for the amount of $30,000. I was thinking to settle somewhere around 15-17k.
I got back an offer from the adjuster for $3,800. I sent a counter offer of $25,000 and I got back another offer of $4,000.
Is my demand reasonable? How much do you think I should aim for? What are my chances here? Can I get somewhere around 15k? Can I get more if I go to an attorney (actually in my next demand letter I will try to state that this will by my last demand before turning my case to an attorney)?
Like I said before, a short straight answer will help a lot and I would appreciate it.
Thank you,
Adi
AnswerHello again, Adi,
I am sorry to see that your question was delayed by Allexperts.com. I did not receive it until this morning. Please see the subjoined e-mail to one of the site managers for further information. I trust that in your feedback you will not penalize me for this delay.. Feel free to write to them if this delay caused you any inconvenience.
Now, on to your question.
First off, we are not allowed to practice law here, and the giving of specific advice as to specific legal questions is the practice of law according to the various state bar associations. In addition, the owners here do not want to face a malpractice lawsuit should we give the wrong advice.
Having said that, I see nothing wrong with your reasoning and your figures. They are in the ballpark, but your goal might be a tad high if you are thinking of $15K "new" money--that is, IN ADDITION to the medical costs.
Otherwise, I would not give away the farm in an attempt to get a settlement because if you need an attorney, she will NOT appreciate that you have already indicated you would accept a value that is lower than what she is going to put out in her demand.
Also, try to get a discount on your attorney's fees by exempting the settlement amount from the gross award which is the beginning point on computing fees. You could go it alone just to get an offer and then take it to an attorney, thus exempting the amount of the offer from her fees. Do It Yourself Personal Injury Settlement Offer Reduces Personal Injury Attorney Fees http://www.settlementcentral.com/page0109.htm
There is no problem in mentioning going to an attorney in your letter, but maybe you need first to send some additional information that you left out. Some additional proof, such as a witness statement or a new narrative report or a new photo would do well for what we call a "second salvo" letter. Look for something---anything---that you can send or mention as in addition to your demand letter.
Best wishes,
Dr. Settlement, J.D. (Juris Doctor)
www.SettlementCentral.Com
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To: Katie
E-mail: experts@about-inc.com
Hi Katie,
I am writing in response to your email this morning, June 4th. I logged on and was surprised to see a lot of questions that had never been sent to my email. I did receive the questions from today, June 4th, but NONE OF THE OTHER QUESTIONS came to me in my email.
I did get other email over the first, second, and third of June, so I know that my email was working. My host, AdHost.Com states that there was nothing wrong with my email, and that they never received the questions you show as sent to me on June first, second, or third.
Please advise. I am going to explain this to those who submitted the questions and let them write to you if they are aggrieved.
Best wishes,
David Jackson, aka
Dr. Settlement, J.D. (Juris Doctor)
DoctorSettlement@SettlementCentral.Com
www.SettlementCentral.Com
