How Are Car Accident Settlements Calculated in New Jersey?

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Unfortunately, in an instant, anyone’s life can change. Any car accident can result in catastrophic injuries that will negatively impact one’s life. Collisions not only bring about physical injuries but also can trigger emotional distress. Knowing your legal rights is vital, as you may be entitled to significant compensation for the damages you’ve incurred. Please continue reading to learn how insurance adjusters calculate car accident settlements and how a skilled Morris County Car Accident Attorney can help fight for the just compensation you deserve.  

Is there a method to calculate car accident settlements in New Jersey?

While there may not be a universal settlement formula to determine the value of a car accident claim, insurance companies will typically turn to either the multiplier or the per diem method to get a ballpark estimate of the amount you’re entitled to for the damages you’ve incurred. Insurance adjusters frequently turn to the multiplier method, which involves totaling your economic damages and multiplying that number by a specific factor (typically between 1 and 5) that represents the severity of your injuries to quantify the overall estimate of the settlement. Economic damages are your out-of-pocket expenses. These include past and future medical bills, lost wages, property damage, etc.

However, insurance adjusters may use the per diem method if your injuries are less severe. Typically, this approach considers the daily rate of pain and suffering and then multiplies it by the number of days it takes to reach a complete medical recovery. For example, if you experience pain and suffering for 100 days at a daily rate of $200, the settlement amount for non-tangible losses would be $20,000.

Should I speak to an insurance adjuster?

While you should be polite, providing information or speaking to insurance adjusters without legal representation is never in your best interest. Don’t attempt to negotiate a settlement without an attorney. Insurance adjusters will offer a lowball settlement to save their employer as much money as possible.

They typically approach victims quickly after an accident before they have enough time to consult an attorney and learn how much they may be entitled to for the damages they’ve suffered. Remember that anything you say to an insurance adjuster can be flipped and used against you to minimize your settlement. Even though it may seem like the insurance adjuster is on your side, you must remember they are not.

If you’ve been seriously injured in a car accident, please don’t hesitate to contact a determined Morris County car accident attorney from the legal team at Lutz Injury Law. Our firm is prepared to help you fight for the maximum compensation you’re entitled to for your economic and non-economic damages.

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