Car Accident Settlements

To make car accident claims and to achieve car accident settlements, you must understand two things . . . the settlement process and the settlement value of your car accident claim.

Actually, there are two kinds of car accident settlements and they are handled differently . . . and usually separately. There are settlements for the injuries you received in your car accident and for damage done to your car.

This discussion is about your claim to be compensated for your injuries. These are often called "Personal Injury claims" or "P.I. claims." Some insurance companies call them "Bodily Injury" or "B.I." claims. (See, you're already learning the language of car accident settlements.) Click here to learn about claims for damage to your car or other property. One more preliminary.

Twelve (12) states have a no-fault system that applies to car accident injury settlements. In routine cases in those states, an injured driver is paid by her own insurance company for her medical bills and lost income, but she cannot be compensated for pain and suffering or make a claim against the driver who caused the accident.

However, even in those states, an injured person can make a claim for compensation against the driver who caused the accident under certain circumstances, such as where the injuries are "serious" or the out-of-pocket expenses are above a certain threshold amount.

So, even if you are in a no-fault state, I recommend that you read on . . . you may end making a claim against the driver who caused your accident.   If you are not sure about your case, complete this 2 step form to have your case evaluated for free by a qualified car accident attorney.

Car Accident Settlement Process

The car accident settlements process begins when your accident happens and ends, if all goes well, when you receive a check compensating you for your injuries and other losses.

Yes, the car accident settlements process begins at the scene of your accident where you start to gather information . . . let's call it what it is, "evidence" . . . that will be considered in settling your claim.

From that time until you submit your claim, you collect and preserve evidence that documents the cause of your accident and answers this question . . .

How has this car accident affected my life?

The evidence you gather should include. . .

• The facts of how the car accident happened, with supporting documentation such as the police report, witness statements and photos. Use this accident investigation form to record information at the scene of your accident. Then, keep a diary of important accident-related information, using this diary form.
• Medical records that show what injuries you received, how they were treated and how well you recovered.
• Medical bills that you incurred to treat your car accident injuries.
• A statement verifying any loss of income that resulted from your car accident injuries.
• Documentation of any other financial losses that you had as a result of your car accident.
• Evidence of your pain and suffering.

When you completely recover from your injuries . . . or, if you won't completely recover, when you recover as much as you are going to . . . you submit this information to the insurance company in a "settlement package" or, as it is also called, a "demand package" to begin settlement negotiations.

After the insurance company responds, staking out its initial position, there is normally a give-and-take, back-and-forth negotiation. With preparation, patience and good luck, this process will lead to a car accident settlement.

The final paperwork involves trading a Release for a check. That is, the insurance company pays you money to compensate you for your injuries and damages and, in return, you give a release of your right to make any further injury claims as a result of your accident. When this is done, your car accident settlement is complete.

Click here if you want to learn more about the car accident settlements process , including such things as how insurance companies and their adjusters operate, how to thoroughly document and present your claim and some of the strategic considerations.

Settlement Value of Your Car Accident Claim

There are 3 main ways to estimate the settlement value of your injury claim.

1. Colossus.

2. Multiple of Specials

3. Per Diem

Colossus

Most of the large insurance companies use a software program called Colossus , or something similar, to calculate car accident settlements values in small to medium sized cases.

Different insurance companies use this software differently. Some rely on it heavily, especially when the adjuster is inexperienced. Others use it only as a guide or a tool.

You can't use Colossus because it isn't available to you. You wouldn't want to use it even if you could. Colossus doesn't consider many of the key facts of the case and doesn't know -- or care about -- what you went through.

But you must know that Colossus exists and, generally, how it works.

Multiple of Specials

To determine what is a fair settlement amount for your injuries, in a typical case you add together the compensation for these 3 things . . .

1. Medical bills.

2. Lost income.

3. Pain and suffering

Although lawyers and insurance adjusters usually deny using this system, in a routine car accident case that does not involve serious or permanent injuries, many of them calculate settlement value by multiplying the medical bills and lost income . . . which the industry calls "special damages" or "specials" . . . by somewhere between 1 1/2 and 4, depending on the circumstances of the case.

For example, if you received a neck injury in your car accident, incurred medical bills of $2,500 and missed a week of work which cost you $1,000, your "specials" are $3,500. Depending on the other facts in the case, the settlement value, under the multiple of specials system, is between $5,250 (1 1/2 times specials) and $14,000 (4 times specials).

Per Diem

Another way to determine settlement value is to calculate your pain and suffering by attributing a "per diem" (per day)(or per week, month, etc.) value to it and add that amount to your "specials."

Although insurance companies don't agree with me on this, I suggest valuing each month from the time of your injury until you completed treatment at $3,000 and each month thereafter that you suffered from symptoms at $1,000 per month.

For example, let's continue to assume that you had medical out-of-pocket expenses of $2,500 and lost income of $1,000, or total specials of $3,500. Assume further that you were treated for your injuries for 3 months and that, even after you finished treatment, you continued to have pain and stiffness in your neck for another 2 months. After that, you were fine.

Using my suggested values, the total pain and suffering value under the per diem system is $11,000, and, when the out-of-pocket expenses are added, the total settlement value is about $14,500.

Of course, as you have probably already figured out, these methods of determining settlement value do not apply to no-fault systems which do not compensate for pain and suffering. They only compensate for out-of-pocket expenses.

Click here if you want to learn much more about the settlement value of your accident claim , including such things as how to identify and prove the elements of your claim and further explanations of the 3 methods of valuing your claim.

The Easiest Way To Do It Yourself

At the risk of sounding immodest, my new ebook, The Car Accident Claims Kit, is the best resource available for settling your own car accident claims. In it, I condensed the information at this website, organized the process into the step-by-step Car Accident Claims Checklist -- which you will only find in my book -- and then added all the forms you need.

My goal is for my book to literally put hundreds or thousands of extra dollars into your pocket. The Kit is modestly priced and comes with a 60 day no questions asked money back guarantee.

Finally, to super charge your chance of getting a great result, I am also giving, at no extra cost, a personal informational consultation about your case.

To learn more about The Car Accident Claims Kit, click here.

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