The Secret Formula Insurance Companies Use

By Ben Glass, Esquire

Benjamin W. Glass and Associates

. https://www.benglasslaw.com/

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The Secret Formula Insurance Companies Use

Here is some information from a former car insurance adjuster about the ins and outs of the insurance industry.

Injury claims are a frustrating world of uncertainty and confusion. You can't discern how much your pain and suffering is worth and what factors are driving the insurance companies' settlement offers. You may suspect, as many do, the insurance companies have and are using a formula to determine exactly how much to offer you. In certain instances, you're actually not entirely wrong.

Let's explore how insurers evaluate your claim. They lean heavily on the facts of the case. This means that the visible damage, the medical records, the accident report, and the treatment received are usually more important to an insurer than your description of the pain you felt or still feel. Typically, they are feeding your medical records into a computer system that categorizes the information and asks a few basic questions and spits out a suggested value range. The specific criteria used in the calculation depends on the program used.

Don't let this process concern you. For one, it is just a suggested value, not a required one. My source notes that when handling claims, he placed virtually no weight on the value the computer program produced and indicated that he wasn't alone in this practice. Don't waste too much mental energy worrying whether this is going on or not. No two claims are the same and that's the statement you can provide the insurer if you think they are being too formulaic in their evaluation of your claim.

But what about the medical bills multiplied by three you always hear about? Well, it doesn't really exist. If your claim payout ends up being three times the medical bills, it's due to coincidence, not a truism. Pain and suffering payments could be .2x, 4x, 1.56x, 5x or whatever is appropriate, and it's simply not tied to a formula. Let that notion be put to rest.

The salient point here is that a claim is worth its merits and the merits are based on far too many subjective and objective factors to determine precise values. This is why good communication and a review of all information available is certainly the best way to work towards a fair settlement.

If you feel like you're not getting fair treatment from the insurance company, consider consulting with a competent attorney experienced in this type of case. It can make your life a lot easier and the results can be a real benefit to you.