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How are car accident settlements calculated?

how are car accident settlements calculated

After your car accident in South Carolina, the insurance representatives must decide how much of your damages they will pay. They may make an offer that seems fair, but often, they may give an initial number that’s almost insultingly low. Before you accept that check, it’s wise to know more about how car accident settlements are calculated. 

Below, a Greenville car accident lawyer from Smith Jordan Law explains the factors an adjuster may use to make their first offer. By scheduling a free consultation with us, we can help you understand how to potentially get more so that all your damages are covered fairly.

South Carolina auto insurance basics

The South Carolina Department of Insurance (SCDOI) states that all drivers in our state must carry liability insurance and uninsured motorist coverage (UM).  Further, insurance companies are required to offer underinsured motorist coverage (UIM). Liability pays for damages a driver causes in an accident, while UM pays for your losses if the at-fault driver doesn’t have any insurance.  UIM pays for your losses if the at-fault driver doesn’t have enough insurance. The minimum for both liability and UM/UIM is $25,000 bodily injury costs per person (and up to $50,000 per accident) plus $25,000 for property damage. 

Auto insurance is intended to “make the victim whole,” which means the settlement must fix what was broken, help the person recover, and balance out any lasting impacts. 

  • Fixing what was broken: This covers most economic damages that have a specific value, such as medical expenses, future care costs, property damage to your vehicle or other items, and your lost wages while you recover. 
  • Helping you recover: If you are left with severe injuries that affect your mobility or cognitive function, you could require lifelong care or need to renovate your home to accommodate a wheelchair. Your settlement should include money to make this happen.
  • Balancing out lasting impacts: If you are so severely injured that you can’t work again or require permanent round-the-clock treatment, you have lost significant enjoyment of life, time with your family, self-esteem, and emotional health. The settlement must address these sobering changes to your life due to the liable driver’s negligence.

While some pains can’t be fully repaired by a check, there’s no denying that having financial resources to pay for your treatment and give you time to heal will make it easier to face the next chapter of your life.  However, securing that full and fair settlement you deserve will probably be more complicated than you’d expect. Dealing with these setbacks is much easier when you have a skilled car accident lawyer on your side. 

Factors affecting how car accident settlements are calculated

Each insurance company has its own method of calculating what each kind of injury loss is worth and how much value your vehicle holds in the current market. They use these settlement calculators to arrive at a number they offer you, although the “one size fits all” approach may not accurately reflect your losses. You have the right to present evidence showing your actual damages and then negotiate with them for a different number.

In addition, other factors can raise or lower the amount they offer, including:

  • The actions of the parties: The at fault driver’s actions can cause an insurance company to raise or lower its offer.  For example, if the at fault driver was drunk at the time of the wreck, or attempted to flee the scene after the wreck, then the insurance company should make a higher offer.  However, insurance companies often take advantage of people who attempt to represent themselves by telling them that this doesn’t matter. 
  • The insurance policy limits: If the at-fault driver’s policy had only minimum coverage, you likely won’t be offered more. Unfortunately, most serious injuries will require more than $25,000 to treat.
  • Whether you hire a car accident lawyer: Insurance companies know more about the law and their policies than most people do, and they may use that against you to encourage you to take a lower offer. When you have an attorney handling your case, the insurance adjusters know they will have a harder time getting you to take less.
  • The quality of your evidence: Presenting as much documentation as you can with your insurance claim gives you a better chance of getting a more appropriate settlement offer. For example, if your fully restored antique car was damaged, providing full records of the work done and current market value means they won’t offer you the same as if you’d had a Honda Civic.

Ultimately, you may need to go to trial to get the full value of your damage demands if the insurer will not back down. If this happens, your car accident attorney can help you sue the person, not the insurance company, to secure maximum compensation.  If you go this route, your attorney at Smith Jordan Law will help you develop a value for your pain and suffering along with every other expense.  

Learn more about how car accident settlements are calculated in SC

At Smith Jordan Law, we prioritize your best interests, educating you so you can make the well-informed decisions needed for your car accident settlement. Instead of handling negotiations on your own, turn to a Greenville car accident lawyer who will keep you updated and work for maximum compensation. If we don’t win for you, you don’t pay, so contact us online or call (864) 343-2222 today. 

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