Our Methodology: How We Calculate Settlement Estimates

The Multiplier Method

The most widely used personal injury valuation approach is the multiplier method. Here's the formula:

Step 1: Economic Damages

We add up your quantifiable losses:

• Medical bills (past treatment)
• Lost wages (time missed from work)
• Future medical costs (projected ongoing care)
• Property damage (vehicle, equipment, etc.)

Step 2: Pain & Suffering Multiplier

We calculate a multiplier based on four components:

The combined multiplier is capped at 7.0× to prevent unrealistic estimates.

Step 3: Fault Adjustment

In comparative negligence states (most of the US), your recovery is reduced by your percentage of fault. We apply four tiers:

• 100% their fault: No reduction (1.0×)
• Mostly their fault (80%+): 18% reduction (0.82×)
• Shared fault (~50/50): 48% reduction (0.52×)
• Disputed / unclear: 35% reduction (0.65×)

Step 4: Insurance Coverage Factor

A large damages award is only recoverable to the extent insurance covers it:

• High limits ($100K+): No reduction (1.0×)
• Moderate ($25K–$100K): 15% reduction (0.85×)
• Minimum limits: 35% reduction (0.65×)
• Uninsured / underinsured: 50% reduction (0.5×)

Settlement Range

We present a range rather than a single number because settlements vary based on factors we can't fully capture (negotiation skill, specific jurisdiction, judge/jury). We calculate:

• Low: 55% of the midpoint (early/weak settlement)
• Mid: The calculated midpoint (reasonable outcome)
• High: 185% of the midpoint (strong negotiation, favorable jury)

Data Sources

Our settlement ranges are informed by:

• Insurance Research Council (IRC) injury claim studies
• Jury Verdict Research settlement and verdict databases
• RAND Institute for Civil Justice litigation studies
• State bar association jury verdict reports
• National Safety Council injury cost data
• Insurance Information Institute claims data

Important Limitations