"What's my case worth?" It's the question every car accident victim asks. The method for valuing a claim isn't mysterious. This guide explains how claims are valued: damage types, calculation methods, factors affecting value, and settlement vs. court.
Types of Damages
Economic damages
Medical expenses, lost wages, loss of earning capacity, property damage, out-of-pocket costs. Keep every receipt.
Non-economic damages
Pain and suffering, emotional distress, loss of enjoyment of life, loss of consortium. These are argued, not invoiced.
How Claims Get Valued
The multiplier method: add economic damages, multiply by 1.5-5 for non-economic. It's a negotiating framework, not a formula. Other methods: per diem, comparable case analysis.
What Affects Value
Increases: Clear liability, serious documented injuries, permanent effects, consistent treatment, strong impact story, deep coverage.
Decreases: Comparative fault, pre-existing conditions, treatment gaps, low policy limits, social media posts.
Negotiation
First offer is never the real offer. Demand → Response → Counter → Resolution. Never accept first offer. Don't give recorded statements without advice. Document everything. Know your walk-away number. Patience is leverage.
Settle vs. Sue
Settle when: liability clear, offer fair, need closure now.
Sue when: liability denied, offer dramatically low, insurer stonewalling. Filing often restarts negotiation.
FAQ
How long does settlement take?
Months for simple claims, 1+ years for complex. Don't settle before medical picture is clear.
Accept first offer?
Almost never — they're opening positions.
At-fault driver underinsured?
Check your UIM coverage.
Need a lawyer?
For injuries — usually yes. Free consultations, contingency basis.
The Bottom Line
A claim is worth its damages filtered through fault, evidence, limits, and negotiation. Document everything, get consistent care, don't rush, get professional guidance.
General information only, not legal advice. Consult a licensed attorney.
