Important Factors That Affect Bodily Injury Claim Settlement Amounts

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Bodily Injury Settlement Requirements

One of the most frequent questions asked by victims of car accidents is “How much are my injuries worth?”

The truth is, there’s no simple answer to this question. There are a number of factors that can impact claim settlement amounts, all the more reason why you need to have uninsured motorist bodily injury coverage.

In some states, comparative fault is used as a way to determine how much the victim receives for their medical bills. This means that depending of how much the driver who hit you is at-fault (in percentages), those percentages apply to your medical bills.

For example, let’s assume that the driver is found responsible for 80% of the bodily injury because your brakes weren’t functioning properly. As a consequence, 80% of your medical bills will be paid by the driver at fault.

Other factors that may affect the settlement include proof of liability, the county or city where the injury occurred (known as “venue”), whether medical treatments were “reasonable and necessary,” the at-fault party’s driving record, and the claimant’s level of comparative fault.

If you want to find out more about the factors that affect bodily injury claim settlement amounts and the mistakes that might lower them, keep reading. Let’s take a closer look at these factors to see how they might affect your claim.

Factors that increase claim settlement amounts

A number of variables can make your claim settlement amounts bigger, including the location of the accident, the severity of the bodily injury, etc.

One of the most important factors is determining how much pain and suffering was involved. You’ve probably guessed it by now: the more pain, the bigger the settlement amount.

Let’s take a look at what type of injuries create more pain and suffering:

  • Hard injuries such as broken bones, damaged joints, deep wounds, and nerve damage
  • Any long-term consequences of the injury (e.g., chronic pain)
  • Long-term treatment and medication
  • Permanent injuries (e.g., loss of limb, scarring, weakness, poor mobility, etc.)
  • Emotional distress caused by the accident
  • How much of an impact the injury had on your daily life (e.g., losing a job, missing school, canceled vacations, etc.)

Factors that decrease claim settlement amounts

The lesser the damage, the lower the claim settlement amount. But these are not the only factors that can affect the amount of money you receive from the insurer.

Having an attorney on your side will also make the process easier, especially if you’re dealing with unsympathetic insurers on the other side.

When it comes to factors that have nothing to do with the injuries, you will have to look out for the following:

  • Witnesses who favor the other driver
  • Not having someone experienced on your side
  • Proof that you might be sharing blame

When it comes to injuries, your settlement amounts will be smaller if :

  • You are left with a soft tissue injury
  • The majority of the medical expenses were for diagnosis, not for the treatment
  • There was no medication prescribed after the diagnosis
  • The recovery period was short
  • No long treatment care was needed
  • No permanent injuries
  • No physical or emotional problems appeared as a consequence of the injury

How the type of medical treatment can impact your settlement amounts

Not all medical services are seen as mandatory. For example, if you go to a reputable doctor instead of receiving treatment from your local clinic, you may end up paying a large part of the medical bills yourself.

Also, the diagnosis plays a huge part. For instance, if the diagnosis is more expensive than the treatment itself, the insurer may consider that there isn’t enough pain and suffering for you to receiver a larger amount of money. On the flip side, if the diagnosis is cheaper than the treatment itself, you have a higher chance of getting your bills paid.

Another factor that impacts settlement amounts is the type of doctor you use. There’s a strong bias against non-mainstream medicine (e.g., acupuncture, physical therapy, etc), so make sure that most of your treatment comes from hospitals and M.D’s.

Clinics will always be considered more legitimate than non-physicians, even if their treatments are equally effective.

What happens when the driver at fault does not cover your injuries?

There are many cases in which the driver at fault has an insurance that barely covers the minimum requirements. In this case, you might have to find a good attorney to file a lawsuit against the driver.

But these situations can be avoided as well. For example, if you have uninsured motorist coverage, regardless if the driver at-fault insurance covers all of your medical expenses, you will still be able to use your insurance to pay off the medical bills. Another advantage of this type of insurance is that it covers other passengers in your car as well.

On top of it, you will be covered by it no matter if you’re driving or you’re a passenger in somebody’s else’s car.

Why You Should Have Uninsured Motorist Bodily Injury Coverage

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Woman with bodily injury during a car accident

In an ideal world, everyone would have an insurance policy. Unfortunately, in the real world, only 1 in 7 drivers are either underinsured or uninsured.

But how does that impact you and your family?

Let’s say you’re involved in a car accident and the other driver is found guilty. If the driver has insurance, your medical bills and damages will be paid, but if there’s no coverage, you’ll have to pay all the expenses yourself. Uninsured motorist bodily injury coverage helps you avoid this scenario.

In certain states, this type of coverage protects your family too, even if they’re involved in a car crash in someone else’s vehicle.

Also, depending on your liability limits, you can also use the money for extended care if the car crash left you with long-term health issues.

Read on to learn the benefits of having uninsured motorist bodily injury coverage, what it covers, how it works, and how you can find advantageous rates.

What uninsured motorist injury insurance covers

If you opt for this type of insurance, the people living in your house as well as your passengers will all be covered regardless of what happens after the accident. In some cases, the driver will flee the scene, but uninsured motorist bodily injury insurance will cover the medical expenses and other damages.

This type insurance protects you from uninsured drivers and drivers who choose to leave the scene of an accident.

On top of this, you can use this insurance even if you ride in someone else’s car, or if you ride a bike.

In most cases it covers:

  • Emergency care and extended care for health issues caused by the car crash
  • Funeral expenses
  • It may help you if you lose your job due to the accident
  • Pain and emotional distress due to permanent injuries

In some states, this type of insurance is mandatory. In Arizona, the mandatory coverage for bodily injuries is $15,000. However, medical bills are often bigger than the minimum amount of insurance required.

For example, if your medical bills reach climb beyond $70,000, the insurance will cover $15,000 and the rest of the bills will be paid by you.

A good rule of thumb is to choose an insurance that has the same value as your total assets.

Why should this be the case? In a situation where you endure serious injuries and you need emergency care that also happens to be extremely expensive, you may be at risk of losing your assets if your insurance doesn’t have the same value as your home, car, etc.

Shouldn’t the driver at-fault pay anyway?

In some cases, the driver who’s at fault leaves the scene, but even in a case where the driver does stay, you can still be left with hefty medical bills.

You can sue the driver at fault, but you have to keep in mind that people who are uninsured are usually the ones who are trying to save some extra money. The driver is typically financially unstable in cases like this, and even if you do try to go to court, the driver can declare bankruptcy.

Is a premium health insurance plan enough?

Many people believe that a good health insurance plan is enough to protect them from situations where they’re hit by an uninsured driver.

Sadly, your health insurance plan only covers your medical bills. It doesn’t help you in any way if you end up losing your job as a result of the health issues or if you need treatment for a prolonged period of time.

To make things even more complicated, you may not be allowed to use your health insurance first as a means of coverage in the case of a car crash. As a result, you’ll have to use your auto insurance first and then use your health care plan to cover medical bills.

Also, you have to keep in mind that if you have passengers in your car that don’t have a good healthcare plan, they’ll have to pay for the expenses out of the pocket, a scenario that can be avoided with uninsured motorist bodily injury coverage.

How you can find affordable rates for uninsured motorist bodily injury insurance?

You can try to negotiate with insurance companies on you own and look at a few insurance packages. But chances are, you won’t be given a discount.

The advantage that insurance agents have when shopping around for insurance packages is that they have both connections and the ability to negotiate rates because they can promise more clients to companies. As an individual, you can’t say the same.

If you want to get a free quote on how much this type of insurance would cost you, feel free to reach out to us.

How to Get the Best Motorcycle Insurance Rates

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Motorcycle insurance photo
Motorcycle insurance isn’t just a good idea, in most states it is legally required. Unless you are independently wealthy and can afford to cover expenses such as replacing your motorcycle, medical expenses for yourself and others and property damage, a comprehensive insurance policy is a must. Protect yourself and your financial health by having the insurance you need to cover the possible expenses of an accident.

What Does the Best Motorcycle Insurance Include?

Have you asked your self what are the components of a motorcycle insurance? Motorcycle insurance is similar to other vehicles in that the policies can have huge and potentially costly differences. A comprehensive policy should include all of the following:

  1. State minimum coverage and more
    Currently, 47 out of 50 states require some form of motorcycle insurance. The amounts of coverage required differ depending on the state you live in. You need to have insurance not only to protect yourself but also to comply with state law. Keep in mind that state minimums are the bare minimum and should rarely, if ever, be the only coverage you have.
  2. Bodily injury and property damage liability
    Any motorcycle insurance policy should include coverage for bodily injury and property damage liability. If you are at fault for an accident while riding your motorcycle and other people are injured as a result, bodily injury coverage will help pay for expenses related to those injuries, such as medical expenses. Property damage liability covers any property that may be damaged in the accident. This can includes items such as another person’s car or motorcycle and also public property such as road signs and utility poles.
  3. Under/uninsured motorist coverage
    Many states will require you to have under/uninsured motorist coverage. This type of insurance is needed in the event of an accident where the responsible party does not have insurance or does not have enough insurance to pay for the costs associated with the accident. This can protect you financially even if another driver is uninsured.
  4. Replacement coverage
    It’s important to note that property damage liability coverage is designed to cover other people’s property, not your own. Replacement coverage can fill in the gap and help pay for any damages to your motorcycle or other property. Unless you have enough money in the bank to pay for repairs or a brand new motorcycle out of pocket, this type of insurance coverage is a must.

What Does the Average Motorcycle Insurance Cost?

Motorcycle insurance rates will fluctuate based on a number of factors. Your age is still looked at as a prevalent factor when determining insurance rates. If you are under the age of 25 you can expect to pay higher rates than those a little older than you. Insurers consider younger drivers a higher risk and because of this will charge them more.

Your driving history is also a large factor in your premium costs. If you have one accident under your belt already you may be able to get insurance with little to no increased fees, however, if you have two or more accidents on your driving record they may cost you. Insurance companies will do their homework and will carefully scrutinize your driving history. Small citations or moving violations won’t do as much harm to your wallet as accidents with expensive claims. Different companies will have different levels of financial penalties for a streaky track record, so make sure that you shop around for the best price possible.

The type of motorcycle you purchase will also directly relate to the cost of insurance. The faster and more expensive the vehicle, the higher the insurance price tag. Similar to the difference in insuring a minivan versus a Ferrari, a highly-valued racing bike will cost more to insure than a less expensive and slower motorcycle. Sport bikes like the Ducati 1199 Panigale and Suzuki’s GSX-R1000 are good examples of motorcycles that will be on the high end of cost for insurance. These bikes are built forspeed and roadway maneuverability making them likely choices for customers that like to go fast. Any sport bike will be associated as a higher risk to an insurance company and your costs will reflect that.

Expensive to repair or replace bikes will also increase your insurance premium. If you own a custom bike with parts that are difficult to find or a bike that is commonly stolen your insurance rates will be higher. Honda’s are the most commonly stolen motorcycles. If you have an insurance policy that covers the cost of replacement in the event of theft (and you should), expect to pay a little more. The amount of coverage also impacts your monthly premiums. If you maintain the bare state minimum requirements in coverage, you will pay much less in monthly fees than if you carry comprehensive coverage. That being said you will also be much less protected financially in the event of an accident.

Protect Yourself With Motorcycle Insurance

Don’t take chances. Enjoy riding your motorcycle with the peace of mind that you have the right insurance in place, just in case. Call Gebhardt Insurance today and let us make sure you have the insurance you need for a price you can afford.