Chula Vista Auto Accident Attorney

Maximizing Your Auto Accident Settlement - Exposing the "Multiplier Method" Myth

No doubt you have heard of the so-called "Multiplier Method" of determining settlement value in auto accident cases. Simply put, the medical bills are multiplied by 3 to calculate the amount of the settlement. In fact, the 'multiplier method' is nothing more than a scam perpetrated by the insurance companies to keep settlements low.

Just as every person is unique, every auto accident claim is unique. The belief that there is a simple way to arrive at the "correct" amount of settlement is a fallacy which the insurance companies have encouraged to keep settlements low.

A simple example illustrates the point:

ACCIDENT A: rear-end collision, whiplash, $3,000.00 in chiropractic bills, full recovery after three months.

ACCIDENT B: rear-end collision, mid-spine disk injury, non-surgical, $3,000.00 in medical bills, chronic back pain.

According to the "multiplier method," both victims would receive a $9,000.00 settlement. However, Victim B sustained a back injury which cannot be fixed by surgery; as a result, Victim B will suffer chronic back pain for the rest of her life.

The law says every accident victim has the right to compensation for all pain and suffering, past, present and future. Obviously, the "multiplier method" of settlement cheats Victim B and prevents her from receiving a fair settlement.

In personal injury law, every case is unique, and the lawyer you choose to represent you makes a difference. At the Law Offices of Howard Alan KItay, we have negotiated personal injury claims of all sizes with insurance companies for over twenty years. Every case is prepared for trial, as this is the only way to get maximum settlement value for your case. Because every case is prepared for trial, most cases settle before trial - for maximum settlement value. The insurance company adjustors are professionals; you need an experienced auto accident professional on your side.

UNINSURED MOTORIST COVERAGE:
How It Works, and Why You Need to Have It.

Recent reports from insurance companies note a stunning rise in the number of drivers who are cutting back or even dropping their auto insurance to save money during the recession. Karl Newman, president of the Northwest Insurance Council, a trade association based in Seattle, warned that “we may be looking at record numbers of uninsured motorists across the nation.”

“When you see a multi-car collision on the freeway ... if there’s more than three or four cars there, at least one of them is likely to be uninsured,” Newman said.
Industry figures back up that concern. By next year, 1 of every 6 drivers on U.S. roadways is likely to be uninsured, according to the Insurance Research Council, a nonprofit group financed by the insurance industry. The figure is higher in California.

All of this underscores the importance of carrying uninsured motorist coverage. If you are in an accident that is not your fault, and the responsible driver does not have insurance, the failure to carry uninsured motorist coverage may cause you a huge financial hardship. In most cases, you will not be able to recover for medical bills, lost wages or pain and suffering.

However, if you carry uninsured motorist insurance, you are covered! With uninsured motorist coverage, even if the responsible party has no insurance, your own insurance company will pay to repair or replace your vehicle, pay your medical bills, lost wages, and compensate your for pain and suffering.

Uninsured motorist coverage provides you enormous protection against the carelessness of others, at a relatively low cost. Generally, uninsured motorist coverage premiums are far lower than the other premiums on your policy.

Uninsured Motorist Claim Will Not Increase Your Premiums. 

Often, people are reluctant to use their uninsured motorist coverage, for fear that their premiums will increase. This is a false fear. If the collision was not your fault, your premiums will not increase when you use your uninsured motorist coverage. Nor will your insurance company consider dropping you as an insured.

Underinsured Motorist Coverage. 

Many people are not aware that uninsured motorist coverage becomes 'underinsured motorist coverage' in those cases where the responsible party has insurance but the value of your claim exceeds the coverage the responsible party carries. In California, drivers are required to carry minimum coverage of $15,000.00 per person. Where the responsible party carries only $15,000.00 coverage and your damages exceed that amount, your uninsured motorist insurance becomes 'underinsured motorist' coverage, and you have a claim for the difference between $15,000.00 and the limits of your uninsured motorist coverage. While all of this may seem confusing (the insurance industry makes these rules confusing on purpose), a quick consultation with an experienced accident attorney will clear up any confusion so you understand your rights.

Understanding Your Auto Insurance Coverage. 
The National Association of Insurance Commissioners, which represents insurance regulators in all 50 states, confirmed recently that most Americans are uninformed about what their auto policies cover. A quarter of Americans rarely or never review their policies, the association reported in a survey, while three-fifths review their coverage only when they file a claim or renew their policies. As a result, tens of millions of Americans are driving around with policies that don’t reflect major changes in their incomes and family situations. “Now, more than ever, consumers need to be mindful of the impact their insurance decisions can have on their financial future,” said Terri Vaughan, chief executive of the association.

At the Law Offices of Howard Alan Kitay, we have been assisting clients with uninsured motorist and underinsured motorist claims for over twenty years. We will be happy to help you too.