Liability Settlement Value Estimator
Estimates the fair settlement value of a liability claim by combining economic damages (medical expenses, lost wages, future costs) with non-economic damages (pain and suffering), adjusted for comparative fault and policy limits.
Formula
1. Economic Damages
Economic Damages = Medical Expenses + Future Medical Costs + Lost Wages + Future Lost Earning Capacity
2. Pain & Suffering (Non-Economic Damages)
Pain & Suffering = (Medical Expenses + Future Medical Costs) × Multiplier
Multiplier range: 1 (minor) → 5 (severe/permanent)
3. Gross Settlement Value
Gross Value = Economic Damages + Pain & Suffering
4. Comparative Fault Adjustment
Net Value = Gross Value × (1 − Your Liability % / 100)
5. Policy Limit Cap
Final Value = min(Net Value, Policy Limit) [if policy limit > 0]
Assumptions & References
- The multiplier method is the most widely used industry approach for calculating pain and suffering damages; multipliers typically range from 1.5 to 5 depending on injury severity, permanence, and impact on daily life.
- The multiplier is applied to medical expenses only (past + future), not to lost wages, consistent with standard insurance adjuster practice.
- Fault adjustment follows pure comparative negligence rules (used in ~13 states including CA, NY, FL). Under modified comparative negligence (most other states), recovery is barred at 50% or 51% fault — consult local law.
- Policy limits represent the maximum the defendant's insurer will pay; amounts above the limit may require pursuing the defendant's personal assets.
- This tool provides an estimate only and does not constitute legal advice. Actual settlement values depend on jurisdiction, evidence strength, attorney negotiation, and court outcomes.
- References: Jury Verdict Research; Insurance Research Council; Dobbs, Law of Torts (2d ed.); RAND Institute for Civil Justice settlement studies.