How to Calculate General Damages for Auto Insurance

With regard to automobile insurance claims,”general damages” is a term for the items that cannot be determined easily. These are the medical and psychological problems that can occur after an accident such as pain and suffering, mental anguish or other affects you experience. To determine how these affect your life and what type of claim you need to make, you need to figure out what income you may lose and expenses that may be added to your life.

Step 1 – How General Damages Impact Your Life

You need to think about how these pains or mental anguish may impact your life. Do they limit you from performing your job? Do you need special medications or equipment to maintain a normal life? Are they chronic or do the problems pass over time? These are things you need to document before you ever submit a claim.

Step 2 – Insurance Company or Government Limits

Now you need to do your research. Many local and/or State governments have minimum and maximum limits for payments due to pain and suffering. Also most insurance companies have caps or limits they will pay.

Step 3 – Contact Your Insurance Company

Contact your insurance company and inquire how they determine the cost of general damages. Some will calculate a settlement based on medical bills, while other companies will just offer a set amount.

Step 4 – Document Your Expenses

Keep a list of the cost of all medical expenses such as doctor visits, medications, treatments, therapy and cost of transportation. You might also need an expert opinion to document if this condition is curable or will be a chronic condition.

Step 5 – Hire an Attorney

A personal injury attorney is someone trained to work for you to get the correct amount of payments or settlement you deserve. He/she is there to protect your interests. Even though you have to pay for their services, he will be your advocate to make sure you do not settle for a lower amount that will be offered by the insurance company.

Step 6 – The Settlement

With the assistance of your attorney, you will eventually reach an amount acceptable to you and the insurance company. Be sure you accept the final amount. Once you sign the agreement and collect your settlement, it is over. It is very difficult to renegotiate or reopen a claim after it has been closed.