How does an insurance company decide what a personal injury claim is worth?

Insurance companies evaluate a personal injury claim by weighing several factors: the nature and severity of the injuries, the medical treatment received and its documented cost, lost wages, the degree of fault and the strength of the evidence, and the risk to the insurer if the case went to trial. Adjusters often start from the documented economic losses — medical bills and lost income — and then assess the harder-to-quantify elements such as pain and suffering. The strength of the documentation matters enormously: a well-supported claim, with clear medical records and evidence of liability, is valued very differently from one with gaps. Understanding how a claim is actually evaluated from the insurer’s side is central to negotiating a fair settlement, which is where an experienced mediator can help both parties reach a realistic number.