How Are Personal Injury Cases Evaluated by Insurance Companies?

Mar 1, 2023 | Personal Injury

Were you in an accident and wondering how the insurance company will determine settlement? Keep reading to get useful tips in our guide to injury case insurance evaluations.


One of the most important factors in a personal injury case is determining who was at fault for the accident or incident that caused the injury. If it can be proven that another party was responsible for the injury, then that party may be liable for damages.

If you engage with an insurance company before speaking with an attorney and give a recorded statement or other information, it may be used against you as an admission and the insurance company may rely on that statement to offer you a lowball settlement offer. An experienced attorney has resources to perform a customized valuation of your case so that you do not end up taking lowball offers – or worse, giving the other driver’s insurance carrier information that could be used against you.


Another important factor is the extent of the damages suffered by the injured party. Damages can include medical expenses, lost wages, pain and suffering, and other expenses related to the injury. You may have medical bills that you have already paid (past medical expenses) and you may have additional, future medical expenses that may be required to treat your injury. It is important to consider whether any additional medical care may be required and how much that care will cost.

Also, you may need to take time off work to recover from future medical procedures, meaning that you may also have additional lost wages and pain and suffering. Another way to calculate pain and suffering is to take your medical expenses and lost wages and use a multiplier based on the severity of injury and pain typically experienced by the patient (1.5x-5x, for example) and use that number to approximate your pain and suffering damages.


It must be shown that the injury was caused by the accident or incident in question. This requires establishing a direct link between the injury and the actions of the party believed to be liable. In other words, your injury must have arisen or worsened after the date of injury and the medical records or expert medical opinion must show (more likely than not) that your condition was caused by the accident or incident in question.

Insurance coverage

The availability and amount of insurance coverage for the liable party can also play a role in the evaluation of a personal injury case. If the liable party has adequate insurance coverage, it may be easier to recover damages. If the liable party has inadequate coverage, you may be able to obtain recovery from your own insurance if you have uninsured or underinsured motorist coverage or make an additional claim against a party with significant assets that failed to adequately insure itself.

Comparative negligence

In some cases, the injured party may have contributed to their own injuries by acting negligently or recklessly. This may reduce the amount of damages that can be recovered in proportion to the amount of negligence by the injured party.


Personal injury cases are evaluated based on the laws of the jurisdiction in which they are filed. Different jurisdictions may have different laws regarding liability, damages, and other factors. In California, a case may be brought where the incident occurred or where the defendant resides (if in the State of California.)

Statute of limitations

Finally, it is important to consider the statute of limitations for personal injury cases in the jurisdiction where the case is being evaluated. If the case is filed after the statute of limitations has expired, it may be dismissed.

In California, the statute of limitations for filing a personal injury claim related to a car accident is typically two (2) years from the date of the accident. This means that if you were injured in a car accident in California, you have two years from the date of the accident to file a lawsuit against the at-fault driver or their insurance company for damages.

Latest News & Updates

Meet Our San Diego Attorneys

Thomas F. Gallagher, Esq.

Troy B. Krich, Esq.

Contact Gallagher Krich, APC

What Clients Say:

Mike K., Google

Rated 5 out of 5
August 11, 2023

Thank you so much for all your help in resolving a real estate matter so quickly and efficiently.

Mike K

What Clients Say:

Jonas Y., Google

Rated 5 out of 5
December 28, 2022

If you need a “ Closer”, go see Troy. Troy has been one of the best attorneys I have ever worked with. I don’t typically give reviews but after the last case Troy helped me settle out of court, I won’t hesitate to use Troy again! Thanks for all you do Troy !

Jonas Y

What Clients Say:

Daniel E., Google

Rated 5 out of 5
October 11, 2022

I left a voicemail for Tom late Sunday evening and received a phone call first thing the next morning.

Tom was very quick to reply to any questions I had, and if he was caught up in a meeting, he was sure to return my call promptly.

Tom provided sound and logical advice, during a very stressful and uncertain time. At times I asked him to be more aggressive and was often met with the pros and cons of that decision, allowing me to understand the approach and thought process behind his strategy.

Ultimately he provided options for several paths for us to take, worked swiftly, and got us where we needed to be.

He reached out several times to check on my sanity and make sure I was good.

As someone with very high expectations, I would highly recommend his services. He provided expertise that proved to be successful, and also took the time to make sure I was emotionally solid.

Tom assisted with me with a 50% / 50% ownership conflict.

Daniel E

What Clients Say:


Rated 5 out of 5
February 23, 2022

Really informative and actionable, very grateful to have connected and I look forward to working more with them in the future.


What Clients Say:


Rated 5 out of 5
February 8, 2022

i liked that a lawyer, and not a staff member, called me to get the details and he gave me his opinion of what his initial thoughts are about my case.


What Clients Say:

Bob W., Google

Rated 5 out of 5
August 30, 2021

What was thought to be a simple breach of contract turned into a nightmare. Through their tenacity and their deep knowledge of the law, we were successful. There is no reason to look any further as you will not get any better representation than this firm. I highly recommend them and strongly suggest that if you are considering starting a business or are already managing one, this firm will guide you, avoiding the troubled waters businesses sometimes find themselves in.

Bob W

What Clients Say:

Rasmita M., Google

Rated 5 out of 5
August 13, 2021

Johnny Nitti helped us with our estate plan. He was very meticulous while drafting the plan and spent enough time to explain the details to us. He filed the deed with county recorder and paid for the fees himself. Overall, Johnny did a great job and we definitely plan to work with him in the future for any updates to our EP.

Rasmita M

What Clients Say:

George A., Google

Rated 5 out of 5
August 7, 2021

Johnny Nitti helped me with my estate planning (will, living trust, etc.) and made the process smooth. He is very responsive and organized. I highly recommend contacting Johnny.

George A

What Clients Say:

Ashley C., Google

Rated 5 out of 5
July 18, 2020

Tom Gallagher is very knowledgeable and helpful when it comes to business law. I reached out to him reguarding the Pandemic and my salon and I’m so glad I did. Many times stress and hard times can fog clarity and he really helped me understand the laws.

Thanks Tom!!!

Ashley C

What Clients Say:

Evan D., Google

Rated 5 out of 5
July 16, 2019

Thank you Troy for everything! Professional, prompt, and smooth handling of my case. I will be recommending to anyone that is in need of a lawyer.

Evan D