The settlement amount is calculated by adding up the economic and non-economic damages and adding the punitive damages if applicable. Insurance adjusters typically use a formula to calculate the settlement amount, which includes the following steps:
- Add up the victim's economic damages.
- Multiply the economic damages by a number between 1.5 and 5, depending on the severity of the injuries.
- Add the non-economic damages.
- Determine if there is any comparative negligence on the victim's part and reduce the settlement amount accordingly.
- Consider the insurance coverage of the at-fault driver and adjust the settlement amount if necessary.
What is a car accident settlement multiplier?
The car accident settlement multiplier is a tool that is sometimes used to calculate the value of non-economic damages, such as pain and suffering, in a car accident settlement. The multiplier is typically based on the severity of the victim's injuries and the amount of economic damages, such as medical bills and lost wages, that were incurred as a result of the accident.
To use the multiplier method, the victim's economic damages are multiplied by a number, typically ranging from 1.5 to 5, depending on the severity of the injuries. For example, if the victim's economic damages are $10,000 and the multiplier is 2, the value of the victim's non-economic damages would be calculated as $10,000 x 2 = $20,000.
It is important to note that the car accident settlement multiplier is only one method of calculating non-economic damages, and it is not used in all cases. Some insurance companies and attorneys may use alternative methods, such as the per diem method or the daily expenses method, to calculate non-economic damages.