The value of a car accident case reflects the existence or absence of various factors. Some accident victims try to exaggerate the importance of a given factor.
There is no formula for calculating the value of a car accident
In the absence of a simple formula, a lawyer cannot give a client a precise dollar figure.
A lawyer can remind a client about one of the factors that influences the accident’s value. That factor relates to the terms of the defendant’s insurance policy. The policy limits dictate the amount of coverage provided to the victim of any accident. An injury lawyer in Barrie needs to learn the terms of the opposing party’s insurance policy, in order to gain greater insight into the value of the incident that injured a given client.
The different damages add to the factors that affect an accident’s value
Consideration is given to the extent of the vehicle damage, as well as the location of the damaged area. No insurance company would agree to cover damage to a claimant’s vehicle, if the policyholder’s vehicle was damaged on the side, but not on the front or back.
Medical expenses add to the considered factors. That includes the cost of medications, medical equipment, and the costs associated with any form of rehabilitation. The nature of the prescribed treatment adds yet another layer to the pile of factors. Not every treatment calls for performance of a simple procedure, such as taking a pill. Some injuries must be fixed or addressed by surgical means. That is expensive, and has the ability to create a complication.
When a complication arises from a treatment, the defendant should be held responsible. In other words, the complication’s appearance could increase the accident’s value. That assumes that the claimant has been wise enough to refuse to settle until after achieving the level of maximum medical improvement.
The determination of the accident’s value
Insurance companies often use a multiplier during that determination. The figure used as a multiplier is normally one that falls between 1.5 and 5 or 6. In some cases, it might be a figure between 6 and 10. The multiplier should signify the level of the claimant’s pain and suffering. When a claimant has suffered only minor injuries then the insurance company uses a multiplier of 1.5 or 2. On the other hand, if the claimant has become disabled, then the multiplier might be 7 or 8, or even higher.
How do multipliers contribute to determination of the values for different accidents? Each is one factor in a multiplication, with the other factor being the sum of the claimant’s medical expenses. The lost income gets added to the product, and the sum represents the accident’s value.