Personal Injury Settlement – Exposing the “Multiplier Method” Scam

No doubt you have heard of the so-called “Multiplier Method” of determining settlement value in 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 personal injury 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. The insurance company adjustors are professionals; in handling your personal injury claim, the smartest thing you can do is get an aggressive, experienced personal injury professional on your side.