Car accident injuries are almost always accompanied by a great deal of pain and suffering. While it is relatively easy to quantify the damages done to a vehicle, or even to calculate the medical bills associated with an accident, it is nearly impossible to put a dollar amount on the amount a person suffered emotional and physical pain as a result of a car accident.
Insurance companies, therefore, have varying methods in regard to how they attempt to quantify the suffering that resulted from a car accident. Usually, the insurance company will base the compensation for suffering on the medical bills that were incurred. This is often known as the multiplier method.
How does the multiplier method work?
The multiplier method works by taking the quantifiable damages that resulted from a car accident and multiplying it by a certain number depending on the circumstances. In order to establish the number that the quantifiable damages will be multiplied by, the insurance company will take several factors into account, including the seriousness of the injuries, the time it is taking for the injured parties to recover physically and emotionally, the proof of suffering and how obvious the faults of the driver were.
The insurance company will decide on a number, usually between 1.5 or 7, based on these factors, and multiply it with the quantifiable damages.
Calculating compensation after a car accident can be very subjective and as the victim, you may not be satisfied with the sum you received. It is important to understand your legal rights to appeal the compensation and to take further action if necessary.