How Do Insurance Companies Calculate Settlements for Car Accident Injuries in California?

Do California Insurance Companies Have a “Formula” To Determine My Settlement in a Car Accident?

Calculating car accident damages in California is a legally complex and confusing process. Of course, the precise details and severity of your accident and its effect on your health and finances are inherently deciding factors.

That said, in California, there is a general formula that most insurance companies and the courts may use to estimate your financial settlement. Car accident settlements are usually calculated in California based on car insurance, medical expenses incurred, legal fees, severity, lost wages, property damage, and pain and suffering.

This formula includes both “general” and “special damages” plus your lost wages to arrive at an estimated settlement amount.

In the California court, special damages refer to any damage that can be directly assigned a monetary value. These special damages may include loss of future wages, medical expenses, property damage, etc. However, they do not include current lost wages.

General damages are vague and cannot be assigned a specific monetary value. Examples include emotional or psychological harm, the inability to do enjoyable activities you once enjoyed, and more. General damages are commonly assigned a factor of 1 to 5, and this final number is used to multiply the special damages amount.

Your current lost wages due to your inability to work at your present job are added to the total amount after the other calculations have been done.

To put it into writing, “Special damages X the general damages multiplier + lost wages = your settlement amount.”

The word “estimated” amount is usually more accurate because although there is a formula, its components can be highly subjective, such as the extent and severity of general damages and their multiplier. Therefore, to determine this final number, almost always, the experience, resources, and negotiating skills of your Ventura car accident lawyer will prove invaluable.

What Information Will My Lawyer Use to Determine What My Settlement Should Be?

In California, settlement amounts are based on many elements, such as car insurance policies, immediate and future medical expenses, legal costs, the severity of your accident, and much more.

Therefore, every car accident case differs, but it’s worthwhile to understand precisely how insurance companies (and the courts) calculate some of these claims and what may be included in that calculation.

The following are some clarifications of what must be considered:

• Car Insurance policies and their limits – Every policy written has a dollar limit, and the negligent driver’s policy limit may not fully cover your costs.
• Your overall medical expenses – The total cost of your current medical bills and the estimated cost of future rehabilitation, ongoing treatment, and more.
• Your legal expenses – Your lawyer’s fees, court fees, fees for documentation, expert witnesses, etc.
• The severity of your injuries – When the court assesses them, they are usually placed into “tiers.” These tiers can go from minor to significant injuries (which would be tier 1), such as spinal cord injuries, traumatic brain injuries, wrongful death, and more.
• Your lost Wages – This may seem like a simple calculation, but it’s not. It usually includes your age when you were injured, your current income, your to-date lost wages, and your future lost wages due to your inability to continue at work.
• Property Damage – The monetary amount of the damage you’ve incurred directly related to your accident.
• “Pain & Suffering” – These general or non-economic damages usually refer to emotional trauma, depression, loss of relationships, etc. Although difficult to determine, your experienced, knowledgeable, and empathetic car accident lawyer will fight for the substantial compensation that “pain & suffering” can cause.

Is There an “Average” Settlement Amount for Specific Injuries I’ve Sustained?

Again, every auto accident and the circumstances involved differ. So, in reality, there is no precise way to accurately predict your settlement amount before conducting a professional and comprehensive analysis and evaluation of your case.

However, due to the sheer number of car accidents in California, statistics can help you get a clearer picture of your estimated financial compensation.

Some average settlement amounts for some common types of injuries due to car accidents in California are:

• Cases of whiplash can be worth from $15,000-$40,000.
• Knee and shoulder injuries ranged from $60,000-$275,000.
• Neck or back injury – $90,000-$325,000.
• Spinal cord damage or back fractures – $600,000-$1,000,000 Plus.
• Traumatic brain injuries (TBI) – $300,000-$1,000,000 Plus.
• Paralysis or severe spinal or head injury – $1,000,000 Plus.
• Wrongful Death – $2,000,000+

It’s critical to remember that any of the above injury types (and many more) can vary enormously based on their severity, your exact type of injury, and how it affects your life.

Another fact that cannot be overestimated is your Ventura car accident law team’s negotiating skills, experience, depth of knowledge, cutting-edge resources, and passion. Your and your family’s future is at stake, so the most up-to-date and visionary professional representation is mandatory.

Can I Get Compensation for Pain & Suffering Due to My Car Accident?

Federal and California laws define “pain and suffering” as “non-economic” damages. These commonly refer to more intangible psychological and mental damage that you now suffer from due specifically to your accident and your injuries. The types of mental anguish and pain these injuries cause can be devastating and have lifelong adverse effects on your life and relationships.

However, pain and suffering cover a myriad of highly abstract maladies. Proving their effect may require medical specialists, specific tests, and more to fully understand their dire impact on your life.

Some examples of conditions that may include pain and suffering are:

• A significantly diminished quality of life.
• Post-traumatic stress disorder (PTSD.
• Consistent insomnia.
• Grief for the loss of family or loved one.
• Cognitive disorders, such as “brain fog,” inability to focus, etc.

Mental disorders due to your accident can forever alter your life. But your empathetic, professional, resourceful, and insightful car accident law team values your comfort and peace of mind and believes it’s worth significant compensation. Your life may be forever altered, but your professional law team will fight for your right to obtain generous damages for your pain and suffering.

I’ve Been Injured In a Car Accident, and the Bills are Mounting; How Should I Proceed?

After your car accident, your insurance company’s adjuster will contact you and attempt to gather information about your claim. They will ask numerous questions, but it’s critical to note that the adjuster works for your insurance company and not for you!

Determining the total amount of your settlement and navigating this challenging process is complicated. However, this is precisely why you must have a reputable, highly competent, and diligent car accident lawyer by your side.

The Ventura-based Skinner Law Corp. will provide you with diligence, personal communication, technical resources, and empathy so that you can be assured that you will get the compensation and outcome you deserve.

Call them today at 310-256-0074 for a complete consultation on your case. They will then start immediately to obtain the true compensation you rightfully deserve.