An instrument employed to estimate non-economic damages resulting from physical and emotional distress following a motor vehicle collision. These tools often utilize algorithms or formulas, considering factors such as medical expenses, lost wages, and the severity and duration of the injuries sustained, to arrive at a monetary figure intended to compensate for the intangible losses experienced. For instance, if an individual incurs substantial medical bills and experiences prolonged discomfort due to injuries from a collision, this device might generate a higher potential settlement value compared to a case with minor injuries and minimal treatment.
Such an estimation resource offers several potential advantages. It can provide a preliminary understanding of the potential value of a claim, assisting individuals in making informed decisions about settlement negotiations. Furthermore, it can serve as a benchmark for assessing the fairness of settlement offers presented by insurance companies. Historically, determining appropriate compensation for these intangible damages has been subjective, leading to inconsistencies in settlement outcomes. The introduction of this technology attempts to introduce a degree of objectivity and standardization to the valuation process.
