Claim Settlement Value Estimator
Estimates the fair settlement value of an insurance claim based on medical expenses, lost wages, pain and suffering, property damage, and comparative fault percentage.
Formula
Step 1 — Economic Damages:
Economic Damages = Medical Expenses + Lost Wages + Future Medical + Future Lost Wages + Property Damage
Step 2 — Pain & Suffering (Non-Economic Damages):
Pain & Suffering = (Medical Expenses + Future Medical Expenses) × Multiplier
Multiplier range: 1 (minor) → 5 (catastrophic/permanent injury)
Step 3 — Gross Settlement Value:
Gross Settlement = Economic Damages + Pain & Suffering
Step 4 — Comparative Fault Adjustment:
Net Settlement = Gross Settlement × (1 − Claimant Fault % / 100)
Step 5 — Realistic Range:
Low (insurer) = Net × 60% | Fair = Net × 80% | High = Net × 100%
Assumptions & References
- The multiplier method is the most widely used industry approach for calculating non-economic (pain & suffering) damages; the multiplier is applied only to medical costs, not wages or property damage.
- Multiplier values: 1–1.5 = minor/temporary injuries; 2–3 = moderate injuries with recovery; 4–5 = severe, permanent, or catastrophic injuries.
- Comparative fault (pure comparative negligence rule) reduces the claimant's recovery proportionally to their share of fault. Some states use modified comparative fault (bars recovery above 50% or 51% fault) — consult local law.
- The realistic range (60%–100% of net value) reflects that insurers typically open negotiations below full value; 80% is used as a fair mid-point estimate.
- This tool does not account for policy limits, subrogation rights, attorney fees (typically 33%–40% of settlement), or punitive damages.
- References: Stein on Personal Injury Damages (3rd ed.); Insurance Research Council (IRC) Claim Practices Studies; RAND Institute for Civil Justice — Compensation for Accidental Injuries in the United States.
- This estimate is for informational purposes only and does not constitute legal or insurance advice. Consult a licensed attorney or claims adjuster for case-specific guidance.