How is a “Fair” Insurance Settlement Calculated?

If you have been injured, or suffering from a disability, your claim is almost always being defended by an insurance company. Often, you will be contacted by the insurance company early on, with an offer to settle your claim. Although an early insurance settlement may seem reasonable, do you know how an insurance settlement offer is calculated?

Advice from an experienced personal injury lawyer can ensure you don’t leave any potential settlement funds on the table by taking a settlement too early.

Who really decides the true value of your personal injury claim?

When you bring a claim for accident benefits after a motor vehicle accident, sue a party for damages arising from negligence, or dispute your entitlement to disability benefits, the claim is defended by an insurance company and their lawyer.

An insurer’s motivation is to settle a claim as soon as possible, for the lowest possible amount that compensates the claimant. Every claim for damages is initially assessed by an adjuster, who reviews the details of the claim and sets a “reserve fund amount” for the claim. This amount is used to determine an insurer’s potential financial liabilities on outstanding claims. The reserve fund is also used as the basis for future settlement offers, with insurers trying to settle claims below this amount.

The importance of negotiation to getting fair insurance settlement

The more information and detail about your injuries that an adjuster is given, the more accurately they will be able to set their reserve for your claim. No insurer wants to “lowball” or pay an unfair settlement, but if they do not have the right kinds of information about your damages, they may not be able to appreciate the full extent of your losses.

From day one, you need a skilled civil litigation specialist with decades of personal injury and insurance experience. At Jasmine Daya & Company, we understand in detail how adjusters set reserves and determine a “fair” insurance settlement, and know how to present evidence of your injuries to the insurance company to prove the true extent of your losses.

Experienced Toronto personal injury lawyers helping victims get a fair insurance settlement

Our personal injury lawyers have decades of experience fighting insurance companies on behalf of accident victims. When negotiation does not resolve your claim fairly, we are highly regarded trial counsel, and will not hesitate to take matters to court where appropriate.

Contact our office online, or call 416-967-9100 to make an appointment. New clients are entitled to a free consultation to review their matter.