Every day, people are injured in accidents and file insurance claims to cover the numerous costs of their injuries. To make sure you get all the compensation you are entitled to, it is helpful to understand how insurance companies calculate the value of injuries.
First, insurance companies consider numerous losses, injuries, and painful experiences when they evaluate an insurance claim. For example, they will calculate all the money you have lost or spent because of your injuries as well as potential compensation for pain and suffering. Insurance companies will also consider your policy limits. Exactly how insurance companies evaluate non-economci injuries like pain and suffering varies. Generally, the greater your economic losses are, the higher your non-economic damages might be. Even so, this is not set in stone, and you should get a lawyer to help you maximize your claim. If the insurance company wants to reduce your compensation or tries to lowball you, get a lawyer and push back. Insurance companies often undervalue injuries to save them money.
Call our NJ personal injury lawyers at Legal Care New Jersey to get a confidential review of your claims for free at (732) 838-9769.
What Insurance Companies Might Consider When Calculating Injury Claim Value in NJ
Insurance companies consider numerous factors surrounding any particular case when evaluating injuries. When submitting an insurance claim, there is no such thing as an unimportant detail. Unfortunately, the claims process can be long and convoluted. An attorney can help you get your claims assessed as soon as possible.
Insurance companies almost always consider the claimant’s economic losses related to their injuries. This normally revolves around the claimant’s medical expenses from treating their injuries. Medical care is notoriously expensive, and even minor treatments and medical procedures can be very costly. Those with more severe injuries might incur enormous medical bills, and claimants often rely on insurance to help them.
There might be other economic losses to claim, too. For example, you might have had to travel to a distant hospital to get treatment from a specialist doctor. You can claim your travel costs, including gas, plane tickets, hotels, and food.
Non-economic injuries may also be considered when an insurance company evaluates your injuries. Many accidents and injuries take a huge psychological or emotional toll on injured victims. While these injuries are often unrelated to money or financial losses, they can still be compensated by the insurance company. These injuries are very subjective, so our New Jersey personal injury lawyers might have to go back and forth with an insurance adjuster before you arrive at a fair sum of money.
How Insurance Companies Calculate the Value of Non-Economic Injuries in NJ
Exactly how an insurance company calculates the value of non-economic injuries varies depending on the company and its policy on calculating non-economic injuries like pain and suffering. The company might have a few commonly used methods that are ingrained into company policy. However, your attorney might be able to help you push for better compensation.
Some insurance companies might use your economic losses and costs as a base value. Then, they might multiply the base value by a figure related to the severity of your injuries and overall claim. More serious cases might have greater multiplier figures and, therefore, greater non-economic compensation.
The insurance company may also consider the proportion of each party’s fault. If you are partially responsible for the accident or somehow caused your injuries to worsen, the insurance company might reduce damages based on your percentage of fault.
Generally, insurance companies often follow the comparative or contributory negligence laws of the state in which the claimant resides. In New Jersey, modified comparative fault rules are set out under N.J.S.A. § 2A:15-5.1.
Under these laws, an injured party may see their damages reduced proportionately to their percentage of blame for an accident. If you are deemed by the court to be 20% responsible, your damages may be reduced by 20%. Additionally, your share of the blame must not be greater than 50%. If it is, you may be barred from recovering anything.
Maximizing the Value of Injuries in an Insurance Claim in NJ
To help maximize the potential compensation of an insurance claim, you need to make sure the insurance companies realize the full extent of your injuries and costs. First, gather all records of costs, including receipts, invoices, plane tickets, hospital bills, and more. To claim economic expenses, you need proof of how much you spent.
Since non-economic injuries like pain and suffering are not exactly measured by receipts and invoices, you should document your experiences in other ways. Keep a journal and write down how you feel. Consider seeing a mental health professional to be evaluated. Note and record any changes in your mental health since the accident.
What Do I Do if the Insurance Company Reduces the Value of My Injury Claims in NJ?
Do not accept a first offer under almost any circumstances. Insurance companies are known for undervaluing claims, hoping that unrepresented claimants will accept the first offer and move on. Remember, the insurance company will look out for its bottom line first and its customers second. Get a lawyer who can help you push for better compensation.
Communicate with the insurance company through your attorney. Simply having a lawyer represent you will make it much harder for the insurance company to lowball you or pressure you into accepting a paltry settlement.
Review the evidence and the insurance policy. If the policy indicates you should be getting more money or your coverage is greater than what the insurance company says, enforce it. Your policy is the key to your success. It is a legally binding contract. If the insurance company does not cover you as the policy dictates, they may be in breach of contract and subject to legal action.
Contact Our NJ Personal Injury Lawyers About Your Insurance Claim Today
Call our Newark personal injury lawyers at Legal Care New Jersey to get a confidential review of your claims for free at (732) 838-9769
