Car Accident Settlement Calculator Formulas Demystified

Numbers — Roseville, CA — Frank Penney Injury Lawyers

Read the blog from Frank Penney Injury Lawyers in Roseville, CA below.

Before you can begin negotiating a car accident settlement, you need to have a general idea of how much compensation you should reasonably expect. There is no one official formula to get the monetary value of your settlement, but you can get a general idea by combining the totals of economic damages and non-economic damages.

Economic damages are the specific expenses that you’ve had to pay, or will have to pay, as a result of your car accident (or other injury accident, such as slip and fall), and can be backed up by documentation such as receipts or pay stubs. Economic damages can include:

Medical treatment
Future medical treatments
Property damage (such as car repair)
Lost wages
Future lost wages

Noneconomic damages are a little harder to put a dollar value on, such as:

Pain and suffering
Loss of enjoyment
Disruption of lifestyle
Stress

Since non-economic damages are difficult to quantify, people often use a multiplier between 1.5 and 5 to come up with a reasonable number.

(total economic damages) + (total economic damages x 1.5-5)= total compensation.

The Multiplier Approach to Car Accident Settlements

An insurance adjuster will assign the value of the multiplier depending on the severity of your case. Simply put, the worse you were injured, the higher the number. Remember, an insurance adjuster’s job is to save the company as much money as possible, so they will push for a lower number. Part of your negotiation, which an experienced car accident attorney should be able to do, will be to raise the multiplier number and justify it. In rare cases where the other driver is completely at fault and the victim sustains a long-term injury, impairing their ability to work, it is possible to argue for a multiplier higher than 5.

Let’s look at an example:

Maggie was hit from behind by a distracted driver. The force of the accident caved in her rear bumper and threw her against the steering wheel, bruising her ribs and breaking her right wrist.

Her economic damages are as follows:

Hospital bill: $2,500
Prescription pain medication: $50
Follow-up doctor visits: $200
Physical therapy: $150
Car repair: $1,800
Lost wages: $1,500
Total: $6,200

The insurance adjuster believes that Maggie’s injuries were relatively minor and assigns a multiplier of 2, bringing the total noneconomic value to $12,400.

Now let’s say that Maggie hires a personal injury lawyer who successfully argues that because Maggie’s job requires her to work on a computer, the damage to her right wrist will cause her to miss work until she can type again. And say that the doctor’s report shows that she may have permanent nerve damage even after the bones in her wrist have healed. Maggie’s lawyer can convince the insurance adjuster to use a multiplier of 4, bringing the non-economic value to $24,800. Added to the economic damages, the total settlement amount would be $31,000.

The Per Diem Method

The per diem method involves assigning a dollar value to every day that you suffered due to your injuries and adding that to your economic damages total. It’s the method most likely to be used if your case goes to court. You will need to have a logical explanation for how you came to assign that daily dollar amount. Many people choose to use the daily value of their employment wages, reasoning that dealing with their injuries requires as much effort as going to work.

Keep in mind that the settlement amount from an insurance company is limited to the amount of coverage in the at-fault driver’s policy. If the value of your damages exceeds the policy amount, your attorney may advise suing the driver for the difference.

Of course, no amount of money can truly heal the trauma of being injured in an accident that wasn’t your fault. Contact our office to make sure you get the full compensation that you deserve.

< Older Post

Newer Post >

No Fee Guarantee!

Our legal team understands that life can be very stressful after an accident of any type. The financial costs of your accident can add to that stress. When you are asking for help, this should make your life easier – not more difficult. That is why you do not have to worry about any upfront legal fees and expenses when you hire Frank Penney Injury Lawyers to handle your California personal injury case.

At Frank Penney Injury Lawyers, Frank Penney and his staff work on a contingency basis. This means you only have to pay a fee if you win your case. We will never charge a fee unless we obtain a settlement on your behalf. No win. No fee. Case closed.

This means there is no risk in asking Frank Penney Injury Lawyers for help. You get to benefit from Frank Penney’s years of experience, knowledge, and success without needing to stress about the cost. Call today to set up a free initial case assessment or to learn more.

When I first contacted the Law Offices of Frank D. Penney after my accident, I was frustrated with car insurance companies, and medical insurance companies; after all, I was in pain. He and his staff put me at ease instantly! It was such a relief to have someone working on MY BEHALF! They were able to settle my case for more than I initially thought it was worth. THANKS AGAIN!!!

- KRISTA H.

Why Choose Us?

If You Don’t Win, You Don’t Pay
Free Case Evaluations
Over 25 Years of Experience

Compassionate and Caring
Highly Rated Reviews
Proven Track Record

24/7 Availability
Quick Response Time
And More

Our Recent Blog Posts

Driver Seriously Injured in Highway 99 Crash Near Fresno Street

By Frank Penney • June 11, 2025

A driver was seriously injured Saturday evening in a crash on Highway 99 near Fresno Street, according to the California Highway Patrol. The incident occurred on the southbound shoulder of the highway, where a commercial big rig had pulled over due to mechanical issues. As the truck sat stopped on the shoulder, a Ford Taurus traveling at high speed veered onto the same shoulder and slammed into the back of the trailer. Authorities say the Taurus appeared to be driving recklessly before the collision. The impact left the car heavily damaged, and the driver—who was not wearing a seatbelt—was rushed to a local hospital with major injuries. “Our hearts go out to the injured driver,” the CHP said in a statement. “This incident serves as a stark reminder that excessive speed and reckless behavior can have devastating consequences.” The CHP is using the crash as an opportunity to remind all motorists to drive responsibly, follow traffic laws, and always wear a seatbelt. Experience unparalleled legal representation with Frank Penney Injury Law , the esteemed recipients of the CAOC Trial Attorney of the Year award. With over two decades of dedicated service, our team has consistently delivered record-setting results for accident victims in Northern, Central, and Southern California. Enjoy peace of mind with our no upfront fees policy. Contact us today at 888-888-0566 or through our website www.penneylaw.com for a FREE consultation. Frank Penney Injury Lawyers does not represent any of the parties mentioned above. Nevertheless, we sympathize with the victim and their families in this time of crisis.

Innocent Bystander Killed in Multi-Car Crash After Police Chase in Sacramento

By Frank Penney • June 11, 2025

A tragic series of events unfolded Saturday morning in Sacramento when a police pursuit ended in a seven-vehicle collision that killed an innocent bystander. The crash occurred at the busy intersection of Florin Road and Greenhaven Drive. The incident began around 10:15 a.m. when Sacramento police received a call from a woman requesting assistance in retrieving her belongings from a home on Farm Dale Way. She expressed concern that her former partner, a known domestic violence suspect, might be present at the residence. Officers recognized the location from a prior domestic violence call the previous weekend. At that time, the suspect, Daniel Cunningham, 33, had already fled before officers arrived. During the ongoing investigation, police developed probable cause to believe that Cunningham had committed felony domestic violence. He was also identified as a parolee at large with an outstanding warrant. On Saturday, officers located Cunningham in a vehicle, which led to a high-speed chase heading westbound on Florin Road. The pursuit ended abruptly when Cunningham’s vehicle crashed into multiple cars at the Florin and Greenhaven intersection. According to police, the pursuit was short and officers had lost visual contact with Cunningham's vehicle just prior to the collision. Following the crash, Cunningham attempted to escape on foot but was quickly apprehended with the assistance of a police K-9. He was transported to a hospital for evaluation before being booked. Tragically, the crash claimed the life of 30-year-old Huyn Huu Duc Nguyen of Elk Grove, a bystander with no connection to the suspect. Details on other possible injuries, including whether children were involved, have not yet been confirmed. Sacramento Police spokesperson Anthony Gamble stated, “Our officers had the obligation to bring this person to justice. He made the decision to run. He made the decision to drive at a high rate of speed. He put himself and everybody else’s lives in danger by his actions and he caused this collision that took the life of somebody who was not involved in this whatsoever.” The California Highway Patrol has taken over the investigation into the crash itself. Cunningham faces multiple charges including parole violation, felony domestic violence, and felony evasion. Experience unparalleled legal representation with Frank Penney Injury Law , the esteemed recipients of the CAOC Trial Attorney of the Year award. With over two decades of dedicated service, our team has consistently delivered record-setting results for accident victims in Northern, Central, and Southern California. Enjoy peace of mind with our no upfront fees policy. Contact us today at 888-888-0566 or through our website www.penneylaw.com for a FREE consultation. Frank Penney Injury Lawyers does not represent any of the parties mentioned above. Nevertheless, we sympathize with the victim and their families in this time of crisis.

Sacramento Woman Killed in Tragic Parking Lot Accident at Bel Air Grocery Store

By Frank Penney • June 5, 2025

A tragic accident in Sacramento claimed the life of a woman on Tuesday evening, June 3, in the parking lot of a Bel Air grocery store on Rush River Drive. Around 6 p.m., Sacramento Police responded to reports of a pedestrian being struck by a vehicle. When officers arrived, they found a woman pinned between two vehicles with severe injuries. She was pronounced dead at the scene. Authorities later identified the victim as 36-year-old Linda Angelica Tracy, a Sacramento resident. According to police, she appears to have been the one operating her own vehicle when it accidentally struck and pinned her between another parked car. Two children were inside her vehicle at the time of the incident but were unharmed. The cause of the crash remains unclear, though investigators confirmed it was not a hit-and-run. Linda’s death has been officially classified as a motor vehicle accident by the Sacramento County Coroner’s Office. Her passing has left a deep void in the lives of those who knew and loved her. In a statement released by her family, Linda was remembered as “an exceptional mother and friend, who constantly put her family and community first.” They described her as someone who never hesitated to take on difficult and thankless tasks. A dedicated Girl Scout troop leader, school fundraiser, and the kind of parent always present for games, birthdays, and play dates, Linda was known for running a tight ship at home and for her love of planning family adventures. Soft-spoken but fiercely loyal, her family said she was the kind of person you wanted in your corner during tough times, someone who would do anything to protect the people she loved. The incident remains under investigation. Experience unparalleled legal representation with Frank Penney Injury Law , the esteemed recipients of the CAOC Trial Attorney of the Year award. With over two decades of dedicated service, our team has consistently delivered record-setting results for accident victims in Northern, Central, and Southern California. Enjoy peace of mind with our no upfront fees policy. Contact us today at 888-888-0566 or through our website www.penneylaw.com for a FREE consultation. Frank Penney Injury Lawyers does not represent any of the parties mentioned above. Nevertheless, we sympathize with the victim and their families in this time of crisis.

24/7 Availability – Reach Us by Phone, Email, Chat and More!

If you are involved in any type of personal injury due to the fault of someone else, our experienced team at Frank Penney Injury Lawyers in Roseville, CA can help. We are available to anyone in Northern California 24/7! Give us a call today to learn more at 888-888-0566. We will fight for your rights!