One primary concern that most victims have after a car accident is how much compensation they may be entitled to receive to cover the damages they’ve endured as a result of another party’s negligence. Insurance companies often use different formulas based on various factors to determine the value of a car accident claim. The calculation of a car accident settlement can be complex. That said, it’s in your best interest to contact a knowledgeable Chesterfield County Car Accident Lawyer who can help you fight for the rightful compensation you deserve. Please continue reading to learn how car accident settlements are calculated in South Carolina to help you understand the legal process better.
What types of damages can I claim after a car accident in South Carolina?
Before negotiating a settlement with an insurance company, you must determine how much your claim is worth. Injured parties can seek compensation for their economic and non-economic damages. Economic damages represent tangible losses that are easily calculable. Non-economic damages, on the other hand, represent non-tangible losses that are not quantifiable. Punitive damages are rarely ordered, but they punish a defendant for their wrongful acts instead of reimbursing a victim.
How do insurers calculate car accident claims?
There’s no universal settlement formula, as no two car accident claims are identical. However, insurers often use a “multiplier” method to get a ballpark estimate for the value of a car accident claim. With the multiplier method, insurers total medical bills from the accident and then multiply that number by a specific factor between 1 and 5. This number represents the severity of the injuries. For instance, a factor of 5 would be used if an individual suffered life-altering injuries. In contrast, a factor of 2 may be used for minor injuries where you’re expected to recover completely.
Insurers also rely on the “per diem” method, which is based on a daily rate. Essentially, it considers the number of days you suffered from your injuries. A specific value is assigned for each day, and you will receive that amount for each day until you can resume your daily activities. The per diem method is often used when an individual suffers minor injuries and is expected to recover fully.
A car accident settlement should adequately compensate a victim for their economic and non-economic damages. To ensure you’re not tricked into accepting a lowball settlement, it’s in your best interest to enlist the help of a seasoned Chesterfield County car accident lawyer. At the Cockrell Law Firm, P.C., we have the experience to safeguard your rights and fight for the maximum compensation you’re entitled to.
