The logic behind this mathematical equation and overall concept is intrinsically flawed. If this was a true representation of how insurance companies calculated settlement offers victims would be always incentivized to obtain as much medical treatment, even when it is not medically necessary. Victims would also be encouraged not to return to work to further enhance their wage loss. This type of mathematical formulation is also flawed because it doesn’t account for many other factors that make up a person’s personal injury claim. Not all injuries are treated the same and different types of medical providers are viewed differently. Furthermore, this type of formula fails to account for future medical expenses, disability or income loss.
If you fracture your sternum, or ribs, or tailbone or several other bones in your body there often is very little treatment that can improve your injury. Medical intervention may be minimal but healing time may drag for weeks if not months. During that time you may not be able to return to work, may require assistance around the house, and will likely suffer uncomfortable if not intolerable pain. However, your medical bills will very likely not reflect this. After the initial emergency room visit and follow up with the doctor you may not require additional medical visits since there is little they can do for these types of injuries. Your medical bills may only be $2,000. Compare that with another victim of a car accident that suffered a soft tissue injury to their neck. They too were examined in the emergency room and followed up with their doctor. But they required three months of physical therapy or chiropractic and massage therapy to alleviate their pain and heal. With the added medical intervention their bills amounted to $6,000. If we assume that both victims had the same amount of wage loss and use the above formula we would believe that person two would be compensated significantly more than person one. This example clearly outlines the fundamental flaw associated with trying to create a mathematical equation to determine the value of a car accident or any other type of personal injury case.
The reality is much more complicated. In evaluating your claim your attorney as well as the insurance adjuster or a jury will consider many factors. They will look at type of injury, length of treatment, type of treatment, permanency of injury or disability, economic loss, opportunity loss, future losses, future pain and suffering, cause of injury, type of crash, amount of property damage, and many other more subtle factors. The only way you can make sure you get the true value for you case is by consulting with a personal injury attorney, and when appropriate hiring them to maximize your recovery. We offer free consultations so people can review their specific situation with us and together we can determine what their next step should be. Good luck with you case and know that we are here for you!