Injuries and Accidents: How Cost of Damages Are Computed


Car accidents are unfortunate and inevitable realities of life. Getting into a car accident is not only traumatic, but it can also be costly for everyone involved. Aside from the property damage costs, you also need to take care of the lost wages, medical bills, emotional damages, non-economic losses, and other damages that can materialize later on.

While hiring an attorney is the best recourse you can take following a vehicle accident, it is still important that you do your research, should you decide to handle the insurance claim yourself. However, remember that handling the claim on your own does not guarantee that it will be less costly, as you may end up wasting your finances if you fail to take care of it properly.

What information do I need?

There are several factors you need to consider when determining the settlement or compensation amount. Some of the common expenses that you need to take into consideration include:

  • Property damages
  • Medical expenses
  • Lost wages
  • Other lost or future income
  • Other related medical expenses
  • Emotional damages (pain and physical suffering)

Keep in mind that when calculating the value of these expenses, you need to take into account several specific details. For instance, when computing for property damages, you need to consider the condition of your vehicle, the parts that need to be replaced, and other essential information. You cannot just give an average amount; it needs to be as detailed and specific as possible. In addition, providing a figure for the emotional damages or physical suffering is not as simple as you may think. There is no market value or a set price tag that corresponds to the trauma or long-term effects of an accident.

What formula do insurance companies or lawyers use?

Most lawyers and insurance firms use the multiplier method to determine the compensation amount of a claim. A multiplier is applied or multiplied to the total cost of the quantifiable damages. It works on the principle that actual damages such as medical or hospital expenses have a higher degree of seriousness. For instance, a simple fender bender would have a lower multiplier than a serious car accident where the driver sustained life-threatening injuries.

Should I seek legal help?

Due to the complexity of a car accident, it would be best to consult with an experienced attorney like Onder Law instead of handling the claim yourself. Several determining factors need careful assessment, and only a legal professional can do this task efficiently. Keep in mind that some insurance companies are determined to pay you with the least possible amount, and they may not have your best interests at heart.

Knowing what to do in the event of a car accident is not the only thing you should be aware of. You should also educate yourself on other legal aspects to ensure that you get the compensation you rightfully deserve.