How Do Insurance Companies Calculate Personal Injury Claims in Indiana?

Dealing with insurance companies following an accident can increase anxiety levels during an already difficult period. Knowing how an insurance company calculates a personal injury claim in Indiana might help alleviate some of that anxiety.

Companies use a variety of methods to calculate insurance claims and determine the amount of compensation they offer. They can take into account various factors, such as the extent of the claimant’s injuries, medical expenses, and the individuals involved. However, an insurance company might not consider all of your damages. We are here to help you understand the methods used by insurance companies and determine the value of your claim.

Contact Wruck Paupore today at (219) 322-1166 for a free case assessment with our Indiana personal injury attorneys.

What Methods Do Insurance Companies Use to Calculate Personal Injury Claims in Indiana?

When it comes to personal injury claims, insurance companies use various methods to determine the value of compensation to be paid to the injured party. These methods are usually based on a complex analysis of the claim, but one of three approaches is commonly used. However, our Indianapolis personal injury attorneys can help you determine your own calculation so you know what you should expect from the insurance company. They can also sometimes be used in combination to calculate your losses.

The Multiplier Method

One approach to calculating personal injury claims in Indiana involves an approach known as the multiplier method. Insurance companies may use this method to determine the appropriate compensation amount for the claimant. The process involves multiplying the total medical expenses incurred by the claimant by a specific factor called the multiplier.

The multiplier is determined based on several factors, such as the severity of the injury, the impact of the injury on the claimant's life, the extent of pain and suffering, and the duration of the recovery period. The number multiplied is usually between 1.5 and 5, depending on the factors mentioned above. For instance, the multiplier might be higher if the injury is severe and significantly impacts the claimant's life. On the other hand, if the injury is less severe and has a minimal impact on the claimant's life, the multiplier might be lower.

After determining the multiplier, the adjuster then multiplies it by the total medical expenses incurred by the claimant. The resulting figure is then added to the total medical expenses to arrive at the final settlement amount. This settlement amount is intended to compensate the claimant for their medical expenses, lost wages, pain and suffering, and any other damages suffered as a result of the injury.

This approach is usually arbitrary and does not arrive at a fair number for resolution of injury claims, which are unique to every individual. We do not endorse this as a means for determining the amount owed to most clients, although we still often see it from defense lawyers and adjusters.

The Per Diem Method

The per diem method is another one commonly used approach by lawyers and insurance companies when evaluating a claim. Under this approach, the insurer assigns a daily rate to the claimant's pain and suffering, typically based on established guidelines or historical data.

The assigned per diem rate is then multiplied by the number of days the claimant experiences pain and suffering as a result of the injury. This method is particularly useful when the claimant's injuries do not result in significant medical expenses but substantially impact their daily life, such as an inability to perform routine tasks, missed time at work, loss of enjoyment of life, or emotional distress.

We will typically argue a per diem amount to a jury when calculating a client’s pain and suffering, particularly in more serious or permanent injury cases. This is often calculated over the course of the client’s future life expectancy and may be presented in conjunction with expert testimony.

The "Accepted" Method

Insurance companies may rely on various other sources of information to determine the settlement amount for specific injuries. With the “accepted” method, insurance companies use an internal database of historical data to reference previously accepted amounts for similar injuries. This approach is especially useful when no objective criteria are available for assessing the value of certain injuries.

To determine a settlement amount, the insurance adjuster considers multiple factors, including the nature and extent of the injury, medical treatment received, and long-term prognosis. They might also consider the impact of the injury on the claimant's daily life, including their ability to work and participate in activities they enjoy. The location and jurisdiction of where the injury occured, the potential jury pool, the reputation of the lawyers representing the injured party, and other factors are also often part of this calculation.

Additionally, the adjuster might review medical records and consult with medical experts to assess the severity of the injury and the appropriate compensation. They might also consider any pre-existing conditions or prior injuries that could impact the claimant's recovery.

Ultimately, the goal is to arrive at a settlement amount that fully compensates the claimant for their damages. This can be a complex process, and insurance companies are not known for being generous. That is why it is important to have your own accounting of what you are owed and be represented by experienced injury lawyers with a reputation for aggressively pursuing claims.

How Do Lawyers Calculate Personal Injury Claims in Indiana?

Like insurance companies, lawyers rely on different methods to arrive at a value for a personal injury claim. However, attorneys take into account much more information to ensure that an insurance company provides compensation for all the losses that can be shown in court. When we assess your case, our team will also consider factors such as your medical expenses, lost wages, and pain and suffering to determine the value of your claims.

Assess Current and Future Medical Expenses

One of the most important factors to consider in a personal injury claim is the individual's medical bills and related expenses. These expenses can include the costs incurred for emergency medical treatment, hospital stays, surgeries, medications, physical therapy, and ongoing medical care. Gathering all relevant medical records and bills is essential for accurately assessing the value of these expenses.

However, in some cases, personal injuries might require long-term medical care or ongoing treatment, which can affect the victim's life in multiple ways. These future medical expenses are an important consideration in calculating the value of a claim.

Projecting the cost of future medical treatments can be complicated and might require expert opinions to estimate the expenses accurately. Factors such as the victim's age, health condition, and the expected duration of the treatment might also need to be considered while estimating future medical expenses.

Assess Lost Wages and Future Loss of Earnings

Another critical calculation to be done is for your lost wages. When someone is injured, they might be unable to work for a period of time, resulting in a loss of income. You have the right to be compensated for missed time at work, not only to heal from your injuries but also from any days you need to take off for legal appointments or additional doctor appointments resulting from your accident.

However, this is not the only consideration when calculating lost wages. It is important also to consider any potential future loss of earning capacity or diminished earning ability that the injury might cause. This means that if someone is unable to perform their job at the same level as they could before the injury, they might be entitled to compensation for the difference in their earning potential.

Evaluate Non-Economic Damages

Lawyers will also consider your non-economic damages, those that cannot be easily added up. Non-economic damages are more subjective in nature, making them challenging to quantify. These damages, also referred to as "pain and suffering," include emotional distress, loss of enjoyment of life, and physical pain.

However, these methods are not the only factors that lawyers consider when assessing the value of non-economic damages. They also consider individual circumstances, such as the severity of the injury and the impact on the claimant's quality of life.

Additionally, psychological effects, such as anxiety, depression, and post-traumatic stress disorder, can play a significant role in determining the appropriate value of non-economic damages. Ultimately, the goal is to ensure that the injured party receives fair compensation for all the damages they have suffered, financially and emotionally.

Analyze for Comparative Fault

Lawyers also play a crucial role in determining the degree of fault in a personal injury claim. In Indiana, determining whether you contributed to the accident is vital, as the state follows a "51% fault" rule, known as a modified comparative negligence system. In this system, the victim's ability to recover compensation is determined by their percentage of fault. If the plaintiff is, at a maximum, 50% responsible, they are eligible for compensation. Anything over that (e.g., 51% fault), and they are barred from recovery.

If the insurance company believes that the victim is partially responsible for the accident, their compensation might be reduced proportionally to their percentage of fault. If the insurance company believes that the claimant was more at fault than the defendant, they will likely deny the claim. In such cases, it becomes necessary to have the court determine liability. Therefore, the plaintiff must provide evidence that establishes the defendant's negligence and minimizes their own share of fault.

Also, an individual’s compensation could be reduced even if their percentage of fault is 50% or less. For instance, if the insurance company believes the claimant is about 20% responsible for the accident, they will likely try to use this as a basis for offering a lower settlement amount.

Steps to Take So that the Insurance Company Calculates Your Personal Injury Claim Accurately

After experiencing a personal injury, it is crucial to follow the right procedures to ensure the insurance company accurately calculates your personal injury claim. Following these steps can help you gather the necessary documentation, navigate the legal aspects, and maximize your chances of receiving proper compensation.

Get Immediate Medical Attention

You should first prioritize seeking immediate medical attention after an accident, regardless of whether you feel your injuries are minor or major. Even if you don't feel pain or discomfort, some injuries may become apparent later. Timely medical treatment guarantees your well-being and creates a medical record of your injuries, which is crucial for the insurance company's evaluation.

Document the Accident Scene

Take photographs or videos of the accident scene, including any visible damages, injuries, skid marks, or hazardous conditions. These visual records provide tangible evidence that strengthens your case and helps the insurance company understand the accident's circumstances.

Preserve All Records Relating to the Accident

After an accident and thorough treatment, gathering all the relevant documents related to the incident and your injuries is essential. This includes police reports, witness statements, medical records, medical bills, proof of lost wages, and any correspondence with insurance companies or other parties involved.

These documents provide concrete evidence and support your compensation claim. Police reports are particularly important as they contain the officer's observations and notes about the accident. Witness statements can help to corroborate your account of events.

Any correspondence with insurance companies or other parties involved can help to establish liability and damages. Gathering all these documents can be time-consuming, but it is a crucial step in seeking compensation for your injuries.

Follow Recommended Medical Treatments

It is crucial to adhere to all the treatments and therapies recommended by your healthcare providers. This includes taking your medications as prescribed, attending all medical appointments, and following up on consultations.

It is also important to keep a detailed record of all your medical appointments and medications, as this will demonstrate your commitment to recovery and help to strengthen your compensation claim. Following your healthcare providers’ medical advice can improve your chances of a successful recovery and receive the compensation you deserve.

Understand the Insurance Company’s Claims Process

Whenever you need to file a personal injury claim in Indiana, you should understand the step-by-step procedures involved. This includes notifying the insurance company of the responsible party, gathering all the necessary documentation, and carefully negotiating a settlement. You can avoid unwanted surprises by familiarizing yourself with an insurance company’s particular process.

Be Mindful of What You Say to the Insurance Company

Cooperating with the insurance adjusters assigned to your claim is important, but be careful of what you say. While you should answer their questions honestly and provide requested documentation promptly, it is essential to remember that insurance adjusters work for the insurance company and might try to minimize the value of your claim.

When providing any statements to the insurance company, be cautious about what you say. Stick to the facts and avoid speculating or guessing. It is easy for your words to be misinterpreted or used against you later. If unsure or uncomfortable, consult with your attorney before giving a recorded statement.

Our Indiana Personal Injury Lawyers Can Help You with Your Claim

For a free review of your case with our Hammond, IN personal injury lawyers, call Wruck Paupore at (219) 322-1166.