Elements of a Standard Car Accident Settlement Calculator Formula

June 12, 2013

Learn how insurers determine the value of an auto accident settlement, and how to calculate what to demand for your own car accident settlement claim.

When you are working out your auto accident settlement claim, then you may not be aware that there is a formula for working out a settlement, known as the Baldyga Auto Accident Settlement Evaluation (BASE) formula. This was invented by a man who had worked for a long time in insurance claims, and hoped to create a simple way to decide whether a claim was good or not, and works by assessing how much any damage to the car, any injuries, or emotional damage, is worth. This formula works out how each of these settlements should be combined to produce the maximum satisfaction for the claimants and the insurance company. Understanding how this formula works can help you to understand how much you can expect from an insurance company.

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The BASE Formula

The basic car accident settlement calculator formula allows any claimant to work out how much they are entitled to based upon how much they are charging in each of four different sections. These sections include the total amount of any repairs to the car, any rental car which was used to replace your ordinary car, any personal injuries and medical treatment, and also things such as lost wages, which might affect you in the near future. If you are going to make a claim, then you will have to have all of this data close to hand, and any documents which you use to calculate the BASE formula will also have to be sent to your insurers in order that they can perform the same sums for themselves. This system is also called the auto accident settlement calculator, as you input all of the different factors in your accident, and then charge for them.

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The 4 Sections
The first section works out the damage to the car and the cost of the repairs required. This can soon run in to thousands of dollars so be prepared to put down four or five figure sums in this section. If your car was written off, then you need to include the total cost of a new car, minus any parts of the damaged vehicle that you sold for scrap or parts.

The next section deals with injuries suffered by you, or anyone travelling with you in the car. This can include trips to the ER, use of emergency services, operations or medication, and other medical bills. This is also the place to put down any emotional trauma, although you may have to guess about how much that is worth to you.

Another section calculates the cost of any rental car which you used during the time it too for your car to be repaired or replaced.

The final section allows you to calculate the cost in terms of income. Has it cost you wages, or if you are self employed, has it had a serious impact upon your work life. Either of these things should be counted here, as should any personal losses from the car, such as stereos, wallets, or other items which could not be replaced or repaired.

Injury and Lawyer Negotiation

Although most consumers are accustomed to filing an auto accident settlement claim on their own, there are some cases where you need the services of a lawyer to help.

When to Hire a Lawyer
Negotiating a settlement with an insurance company can be confusing and frustrating. However, there are some instances when you need an insurance lawyer to help guide you on the proper way to negotiate and deal with insurance companies.

There are certain cases when a lawyer is not necessary, but when do you actually need one during an auto accident settlement claim? The need for an insurance lawyer largely depends on your situation. If the settlement claim involves a huge amount, then talking to a lawyer is a good idea to help you negotiate the terms of the claim.

It is also a good idea to hire a good injury lawyer if you obtained serious physical, emotional or mental injury as a result of the auto accident. Understand that hiring a lawyer for a civil lawsuit is different from hiring one to help you negotiate on your auto insurance claims.

Insurance Lawyers and Their Role
If an insurance lawyer is necessary in your case, they will be able to help you tremendously. An insurance lawyer has several responsibilities during an auto accident settlement claim. One of the main tasks of the insurance lawyer prior to the settlement is to gather all the information pertinent to the claim. This can include, but is not limited to, accident reports, medical reports, witness accounts and photos. It is also the responsibility of the lawyer to send these documents to the insurance company.

An insurance lawyer can help you determine the settlement pain and suffering amount. They will be able to provide you with a more accurate and appropriate amount to be negotiated with the insurance company. In the event that you are having difficulty communicating with the insurance company then it is definitely time to call an insurance lawyer.

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Determining an Auto Accident Settlement Amount Yourself

Work out the data. Before you can claim any money, you will have to work out how much each section of the base formula amounts to, in your case. This includes the total amount of any repairs to the car, any rental car which was used to replace your ordinary car, any personal injuries and medical treatment, and also factors such as lost wages, which might affect you in the near future. If you are going to make a claim, then you will have to have all of this data close to hand. Any documents which you use to calculate the base formula will also have to be sent to your insurers so they can perform the same additions for themselves.

Calculate the auto damage. You will first have to calculate how much your car has been damaged, and the total amount of repairs required. This can run up to thousands of dollars, so be prepared to put down four or five figure sums in this section. If your car was written off, then you need to include the total cost of a new car, minus any parts of the damaged vehicle you sold for scrap or parts.

Calculate personal damage. Next, work out any injuries suffered by you, or anyone traveling with you in the car. This can include trips to the ER, use of emergency services, operations or medication, and other medical bills. This is also the place to put down any emotional trauma, although you may have to guess about how much this is worth to you.

Calculate rental car use. You should then work out how much it will cost you, or your insurance company, to hire a car for the time it takes for your car to be repaired or replaced. You may have receipts here which can be added together for the final sum, or you may need to call your insurers and ask them the total cost.

Calculate losses. You should also calculate how much the accident has cost you in terms of income. Has it cost you wages, or if you are self employed, has it had a serious impact upon your work life? Either of these things should be counted here, as should any personal losses from the car, such as stereos, wallets, or other items which could not be replaced or repaired.

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