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3 Ways the Insurance Calculates Your Insurance Compensation | Attorney Javier Marcos

Insurance compensation | Attorney Javier Marcos | 713.999.4444

Understanding the complex procedures of insurance companies is not an easy task. You will need to do your research before you are in a position to make a case for yourself to know more less what your insurance compensation should be.

Through this blog, you will learn the basic language (read: jargon) needed for understanding how your insurance company operates. We will explain how companies calculate your compensation after a causality that will help you as you negotiate with them.

Knowing all this, you can let your accident attorney know what you want from your case right from the start.

It will be your way of knowing what to expect from your case. You might accept any offer that your insurance company makes. Mostly because they are not sure of what their rights are. It is always better to have a lawyer by your side, but that does not mean that you should not know what is happening. Ignorance is rarely bliss when your finances are at stake.

Insurance companies use these three methods to calculate your insurance compensation. By having some understanding of how you can make your case stronger, they would not be able to manipulate you.

3 ways the Insurance calculates your insurance compensation:

1.The Multiplier Method

It is a standard method used for evaluating your pain and suffering.  By multiplying your actual damages with a number, they quantify your suffering.  Actual damages include medical bills and lost wages.

Your accident attorney will be able to make this calculation for you and share the amount that they have to use for negotiating with your company.  Let’s say that your medical bills were of 200 dollars, and your lost wages were of 300 dollars. You will multiply the damage of 500 dollars with a number, which will be your insurance compensation for damages.

Since pain and suffering are subjective, and you can only put an arbitrary number on them, most insurance companies have a standard of using three as a multiplier number. You can ask your attorney to find out what number does your insurance company use and negotiate accordingly.

2. The Daily Rate Method

Another popular method is to use a daily rate method. In this, an arbitrary value determines the suffering for each day. Your insurance company supervises the number of days you suffered because of your injury after an accident. Until you can resume your regular life, the insurance company will keep a count of these days. Your daily rate can be the same amount as your lost wages.

3. Use a Combination of Methods

As seen above, it is not easy to put a number on your pain and suffering. You can lobby through your accident lawyer and negotiate to get a ballpark figure using both methods. You can then make any necessary adjustments, depending on the severity of your case.

Do this homework with your lawyer and then approach parties that are to offer you a deal for the loss. You can draft a demand letter based on the values you have gotten after using these three methods. These improve your case during a trial as they give statistical grounds to your lawsuit.

Insurance compensation | Attorney Javier Marcos

As a client, you have to be careful with insurance companies. Insurance companies request money be paid for every monthly premium. But when its their turn to pay for your auto accident, they will try to do their best to give you the least amount of money. This is why you need an accident lawyer like Attorney Javier Marcos. Do not speak with the insurance, let the attorney speak with them. If you speak with them and give them wrong answers, your insurance compensation may be less. Attorney Javier Marcos is open 24 hrs, call 713.999.4444 for a free consultation.


3 maneras en que el seguro calcula su Compensacion de Seguro | Abogado Javier Marcos

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