Even though it helps to hire a specialized car accident attorney after a severe crash, most people do not prefer paying lawyer fees in minor collisions. Hence, they choose to handle the insurance claim themselves. To represent yourself, you must conduct in-depth research in advance and know everything about the car accident payout calculator to ensure you get all the benefits. Below, we will discuss the method insurance companies and lawyers use to compute the settlement value.

Special Vs. General Damages
The car accident settlement amount depends on the losses and the specific costs resulting from the crash. Sadly, many victims do not know how to compute the total losses following a collision. In injury claims and civil accidents, the plaintiffs can claim two kinds of financial compensation. These are known as damages. In civil claims, the two damages covered are general and special. Special damages are also economic damages. These are offered by the at-fault party to pay for the direct monetary losses incurred by the victim and include missed wages or income, medical costs, and vehicular property damage.

Typically, personal injury attorneys review the invoices, receipts, and financial documents from the crash to determine the special damages you will receive. Computing this harm is usually simple. However, some other damages arising from a car accident are relatively less easy to quantify. These include:
Disability or disfigurement
Depression or anxiety
Decreased enjoyment in life
Post-traumatic stress disorder (PTSD)
Emotional turmoil
Physical pain

It is the general damages that compensate for such losses, and they are known as non-economic damages. It is not apparent how insurers put a value on this kind of harm, and companies usually employ different computation methods. Thus, it helps to speak to a knowledgeable attorney regarding these damages. Unfortunately, since these harms are not quantified easily, insurance providers tend to devalue them. Consequently, insurance companies pay the victims the minimum amount possible. Thus, it helps to have a knowledgeable and proficient attorney to help you with the computation.

How does the multiplier method work as a car accident payout calculator for general damages?
The formula used in the car accident payout calculator is simple.
Formula: Economic damages + (economic damages x multiplier).
Let us understand this in detail.

The primary question in computing the settlement amount is determining what the suffering and pain from the injuries are worth. It can comprise stress, anxiety, physical discomfort, and the negative outcomes from car accident injuries and their impact on your life. The easiest way to compute the general harm with the car accident payout calculator is by using the multiplier. To get to a precise value, the insurance adjuster adds all quantifiable losses or special medical damages and multiplies them by a figure between 1.5 and 5 to arrive at the final settlement amount.

This multiplier will depend on the severity of the damages. The multiplier employed against the injuries is the bone of contention between your car accident lawyer, insurance company, and you. Naturally, you will seek a higher multiplier, whereas the adjuster will nudge you to a lower one.

Of course, there is room for negotiations, but you must know that multipliers 4/5 are strictly reserved for severe injuries, demanding long-term rehabilitation for several months or years. Thus, you can expect a multiplier of five only if the injuries are life-altering and permanent. Typically, the settlement claims involve a 2/3 multiplier.

So, once the multiplier is decided, you will get a figure for the general damages. You can add it to the special damages, and the total will give the insurance adjuster an idea of the settlement value. Please remember it is merely the beginning of the settlement negotiations.