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Putting a Value on Your Car Accident Claim

There are basically two things that can help determine the value of settlement compensation after a car accident: the full extent of your damages and the strength of the liability claim. In order to have an idea of how much the settlement compensation you should be receiving, you should understand how these two factors come into play.

The strength of your liability claim will depend on the evidence of “negligence” of the other driver that caused the accident. Recovering for damages from a no-fault state can be close to impossible, unless liability exists. You should be able to show the carelessness of the other driver in order to have a strong personal injury claim. If in case the accident was due to you and the other driver’s negligent actions, the settlement claim may depend on whether your state follows the comparative or contributory negligence rule.

As for the extent of your damages, there are three common methods that can determine the value of settlement is common car accidents: (1) colossus, (2) multiple of specials, and (3) per diem. Colossus refers to a software system used by insurance companies to compute the settlement value. Others may not use colossus specifically, but something similar to it. Although you are not allowed to use the colossus software, it is important for you to know how it works and how it will determine your settlement value.

The multiple of specials system requires the use of three elements in order to add the total damages. First is medical bills, another is lost income, and lastly the damages for pain and suffering. Insurance companies often challenge the amount of medical bills and lost payment, citing unreasonably high charges or that they are excessive and not properly supported. You have to make sure that you have supporting evidence for these claims. The damages for pain and suffering can be a more difficult thing to prove, but consulting with a personal injury lawyer would help you understand to put compute it.

One approach in calculating the pain and suffering is through the “per diem” method. The idea is to ask for a certain amount of compensation for each day that the pain caused by the accident has generated. One way to help compute for the daily rate is by every day earnings. You argument would be that the pain caused by the accident is in the least comparable to your effort of going to work every day.