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Auto Insurance Claims/Settlement range for injury from rear-end accident

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Expert: - 8/18/2008


Question
Dear Sirs:
My son was involved in accident where his vehicle was rear-ended. The other insurance carrier accepted liability and has paid for totaling out our vehicle. My son was 19 years old when the accident took place in Washington state. He has had medical treatment for over 10 weeks for a back injury. The injury was reported to be a lumbar strain and phantom knee contusion. He states he feels better but still is having problems riding in a vehicle over two hours at a time. What should be the expected settlement range and what type of documentation will we need to support our position? He is a college student who missed out on working this summer. Your help is greatly appreciated.

Answer
This will depend on several factors:

-please list the medical expenses in detail - dollar amount, providers, type of service
-what is a "phantom" knee contusion?  I have not heard the term "phantom" used in a medical context before.  
-does the doctor believe he will have ongoing medical problems?
-did he miss time from work?  If so, what was the amount of the loss?

Setting a value on an injury claim is a very subjective process.  Three different people will likely come up with three different values.  Insurance companies normally develop ranges such as $1500-$2500 or $20,000-$30,000, depending on the specifics of the injury.

They will consider medical expenses, lost wages, permanent disability, pain, suffering, type of injury, and the severity of the collision when setting a value.

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Claims Guy

Expertise

I am currently an Auto Claims Manager for a large insurance company. I have 18 years experience in the industry, having worked as a Claims Adjuster, Injury Settlement Negotiator, Claims Manager, SIU/Fraud Investigator, and Compliance Officer......I can answer questions related to any aspect of Automobile insurance claims and coverages. I can provide an inside look at how insurers operate. I always treat my customers fairly and want to help make sure you are treated fairly. However, please keep in mind that being treated fairly according to the law does not guarantee that you will get what you want. I can also answer some questions regarding Homeowner's and other types of insurance claims. I have handled all types of auto insurance claims and coverages. I am NOT an automotive repair expert but can give advice re how insurers handle complex repair issues. Please keep in mind that every state has its own set of laws pertaining to rules of the road, liability, and insurance. No one is an expert on every state. I am most familiar with laws in Maryland, DC, West Virginia, and Virginia, but will attempt to answer questions for other states. I am not an attorney an cannot provide legal advice. My advice will be my opinion based on my experience.

Experience

I am currently an Auto Claims Manager for a large insurance company. I have 18 years experience in the industry, having worked as a Claims Adjuster, Injury Settlement Negotiator, Claims Manager, SIU/Fraud Investigator, and Compliance Officer. I am not an attorney an cannot provide legal advice. My advice will be my opinion based on my experience.

Organizations
CPCU Society. Adjusters license in multiple states. International Association of Specal Investigators

Education/Credentials
I have a B.S. in Finance and have completed the AIC and CPCU designations.

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