How auto insurance claims work is not difficult once you understand the damages that a company will normally compensate. An insurance company will not merely award the total amount of damages claimed without thoroughly investigating each one and determining whether they are compensable. Below is an explanation of compensable damages.
Compensable Damages Explained
The term “compensable damages” refers to any injury, damage or other expense incurred as a result of the accident in question. Therefore, to be compensable in an insurance claim, the injury or damage must clearly be a result of the accident, meaning that it cannot have been present prior to the accident. Note, however, that an injury or property damage that was made worse by an auto accident is compensable to the amount that the accident increased the damage.
Types of Compensable Damages
Compensable damages typically include medical bills, prescription costs, property damage and future medical expenses. However, compensable damages can also include lost wages, pain and suffering, mental anguish, and loss of consortium. Loss of consortium is a claim by the injured party’s spouse or child stating that because of the accident his and the injured party’s relationship is no longer the same.
Punitive damages are awards of money levied against the responsible party to punish them for their wrongdoing. Insurance companies do not usually award punitive damages in auto accident cases because there was no intent to harm the other person.
Depending on the type of accident and the injuries sustained, an insurance company may award other damages. These damages could include wrongful death, should the injured party have died as a result of the accident.
The Amounts of Awards
After identifying the types of awards an injured party may receive, the insurance company then turns to the amounts that should be awarded. Most of these amounts will be based on the exact amount of expenses incurred since the accident. This means that medical bills, repair costs and other specifically identifiable amounts will be combined and awarded.
However, not all damages are easily ascribed a value. Loss of consortium, future medical expenses and pain and suffering award amounts are typically based on a guideline scale created by state legislatures or interest groups. As these amounts are merely estimates they are easily debated after an the injured party receives an initial offer.
Obtaining Legal Assistance
If you have been involved in an auto accident and are unsure about the types and amounts of damages you may be entitled to, seek legal assistance. An attorney will identify the damages you may recover for and help you to obtain the highest award possible.
