Strategy Used By Insurance Companies To Estimate The Value of A Motor Vehicle Collision Case

Usually, all involved parties will want to avoid taking a case to trial, due to the time, money, and effort that would have to go into the process. Additionally, the settlements that are reached in court are rarely satisfying, and that goes for everyone involved as well. This is largely due to the fact that it can be extremely difficult to estimate the exact value of an accident claim.

Henceforth, the preferred option and alternative to court-settlement, is the pre-trial settlement. Such settlements most often appear when a motor vehicle accident claim is set to be settled. In these cases, it is the involved insurance companies, who will determine the estimated value of a case with the consideration of a selection of factors.

Motor Vehicle Accident Settlements

Unfortunately, motor vehicle collisions are quite commonplace in today’s day and age, and as a result, every year brings along a new shower of thousands of associated claims. Because of this, all insurance companies have put together a strategy to deal with these claims by making use of assembled data.This data consists of the different types of collisions and their associated payouts which were ultimately agreed upon, in addition to many other data points. Thanks to this data bank, insurance companies were able to set standards, create guides, and ultimate, find a way to settle such cases more efficiently. And for the plaintiffs, there are many personal injury lawyers in Waterloo that can help them handle such claims.

Even with all this data, the estimation will, of course, ultimately be based on the unique circumstances surrounding the collision and the case it resulted in. However, the pre-existing data stemming from similar past cases does help speed up the process and make the ultimate outcome more predictable for your legal counsel.The basic guide insurance companies use for their estimation consists of: your financial loss and general damages, which are then multiplied by a number which is taken from existing statistics within their data bank. What this means for you and your case is that the financial losses you actually suffered will only make up a fraction of what will ultimately determine the estimated value of the claim you filed with your insurance company.

Commonly Claimed For Damages

There is a clear selection of damages which are commonly claimed for, with the most common being special damages. Special damages are made up of general damages and medical expenses, with the former including pain and suffering, as well as emotional distress. Thus, based on your injuries and trauma, you might be eligible for a lot more than you anticipated.

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