How Do Insurance Companies Handle Personal Injury Claims?

Insurance adjuster on the phone with a personal injury victim

Once you file a personal injury claim, you have initiated the negotiation process with the insurance company. This journey can be long depending on the injury and the insurance company’s admission of liability. Victims must always remember that an insurance company wants to pay you as little as possible for your injury. That’s why it is very important that you understand the process and hire a legal professional that can assist you every step of the way.

The right personal injury lawyer has years of experience litigating cases and they will understand how to communicate with insurance companies. As a person that is unfamiliar with the legal system and insurance policies, you will need to learn how insurance companies handle insurance claims. Peter Davis Law explains how insurance companies evaluate personal injury claims and how a personal injury lawyer can help you receive compensation.

Submit a Demand Letter

As the injury victim, you will have to write and submit a demand letter to the insurance company detailing your injuries and damages. In your demand letter you have to outline specifics such as your medical treatments, the total gross wages you have lost and the liability of the other party. Your personal injury lawyer should help you draft the letter and send it to the company.

The insurance adjuster will contact you to discuss the claim and they will give you a settlement offer. Do not take the first offer you receive. Instead, you and your personal injury lawyer should counter the offer with a higher amount. If both sides can’t agree on an amount, then you would proceed to court.

How Does the Adjuster Calculate Damages?

The adjuster uses a special formula to determine the amount of damages you should receive. They calculate the medical special damages, the cost of medical bills, and multiply it by 1.5-2. In extreme circumstances, they multiply the special damages by 5. Next, they add the amount of lost wages to the multiplied figure. Remember that this amount is not set in stone. It is usually the amount they present to you when you begin negotiations.

Not only does the adjuster measure medical special damages and lost wages, they also configure the defendant’s liability into a dollar amount. They take into account comparative negligence, the amount of liability you reserve for the accident. The insurance company will determine what role you played in the accident and the percentage of fault you possess. For example, if they determine you are 30 percent at fault, then your settlement amount may be reduced by 30 percent.

Contact a Personal Injury Lawyer at Peter Davis Law

The Law Offices of Peter N. Davis and Associates, LLC are a team of lawyers that handle personal injury lawsuits. They provide legal help to those who struggle to understand the process of insurance settlement negotiation. Collectively, our team has acquired over $100 million in damages for our clients. Call us today or complete our online contact form to schedule a free consultation. Our personal injury lawyers are standing by ready to help you win your case.