Question:

Is there some kind of formula for car accident settlements?

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I was recently in an accident, the totally at fault insurance company is completely lowballing me. Well, my attorney anyway.

I have heard of some formula, the amount of the medical bills times three is generally the amount paid for pain and suffering.

Is this true? OR some urban legend?

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  1. The pricing protocols have changed over the years.  Years ago cases were formula priced.  However, the insurance companies no longer have such practices.  There evaluations are based on the nature and extent of your injury, disability, treatment and permanency, if any.  Age, pre-disposition, and prior injuries are all factored in.

    A person could sustain a soft tissue injury, and treat with a chiro, PT, acupuncturist, get some diagnostic testing and incur over $20k in meds(easily done in NY).  If you formula price with three as the multiplier, then the settlement should be about $60k(assuming the party was in fact tort eligible).  However, if the same person fractured his arm an only incurred about $5k in medicals, with formula pricing the settlement would only be $15k.  Obviously, the fracture should be worth more.  

    Some insurers may multiply the weeks of total disability by $400-$1000(depending on the venue), and the weeks of partial disability by $200-$500.  

    You do not say where this loss occurred.  Case value varies from state to state.  Also, the offer your received could be a "cost to defend" or "nuisance offer".  You may not even be tort eligible and the adjuster wants to resolve the claim without recourse to litigation.  

    You should be discussing your options with your attorney.  I am sure he knows what your claim is worth, and will negotiate accordingly.  


  2. lol its an urban legend ---i was involved in a car accident that the medical bills ran up to 12 and a half million dollars and the insurance company tried to settle for 6 thousand ...my lawyer held out until he saw the wasnt gonna give me than 12 thousand . so thats what i got a little bitty 12 thousand, theres really no formula...just luck

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