How Does an Insurance Company Value a Claim?

Video Transcription:
A lot of people come into our office and believe that there is some formula for evaluating the value of a claim. They believe that the insurance company goes through a process of putting a value on someone’s injury claim and that there is some mechanical formula that they use where they crunch some numbers and they come up with a value. This is simply not the case. It’s really a matter of a number of factors that they will use and that your lawyer will use. They will use the same factors to try and come up with what a reasonable range of a settlement value would be at the end of the case.

These are largely based on the following:

  • The liability. Was someone clearly at fault?
  • Is there some argument that you might have some comparative fault which might reduce what they owe you?
  • The significance of your injury and how long it takes to recover.
  • Does the medical treatment that you get completely resolve all of your injury symptoms or whether you’ll have continuing problems that will last into the future, particularly if you can’t resume your lifestyle?
  • The cost. The medical expenses, the medical expenses you might need in the future and whether you will be able to resume your job or have you lost the earning capacity, your ability to work in the future.

These are the broad areas that any lawyer or claims adjuster will use to evaluate your claim. And, this is simply not based on a formula.

Jim Dodson
A Florida injury lawyer, family man and avid cyclist who clients have trusted for over 25 years.