How do insurance companies value cases?
Hi, guys. I'm Chris Parks and I wanted to talk to you today about how do insurance companies value cases?
Specifically, when you're talking to an insurance company about an injury case, you're going to be talking to an adjuster. That's just the name of the position of someone who's hired by insurance companies to discuss the facts of a case with an injured party and to try to settle that case.
So, one of the things that insurance adjusters really want to know about are medical bills, the amount of the medical bills and what type of bills they are. Insurance companies live and die by paperwork. They need to actually get copies of the bills and copies of the medical records themselves so that they know what type of treatment you have. And that makes a big difference to an insurance company.
If I got in a terrible car wreck and my next-door neighbor got into almost the identical car wreck, and if I had $100,000 in medical bills but my neighbor only had $5000 in medical bills, then the insurance adjuster is going to value my case at $100,000, plus money for pain and suffering, whereas he's going to value my neighbor's case at only $5000.
The pain and suffering has some relation to the size of the bills. So one of the big things that insurance adjusters look at is the amount of medical bills in a case.