How We Calculate Settlement Estimates
Transparency matters. Here's exactly how our calculators work, what data they use, and what their limitations are.
Reviewed by Leonard Goldberg, Editor · Last updated
The Multiplier Method
Insurance companies (State Farm, GEICO, Progressive, Allstate) and personal injury attorneys commonly use the multiplier method to estimate settlement values. This approach is documented in the Insurance Research Council (IRC) studies and is the same approach our calculators use:
The severity multiplier represents the non-economic damages (pain and suffering, emotional distress, loss of enjoyment of life) as a multiple of your medical expenses. The multiplier ranges are consistent with values published by the American Bar Association (ABA) Tort Trial & Insurance Practice Section:
| Injury Severity | Multiplier Range | Examples |
|---|---|---|
| Minor | 1.5 – 3.0x | Soft tissue, sprains, bruises |
| Moderate | 2.0 – 4.0x | Fractures, herniated discs |
| Severe | 3.0 – 5.0x | Surgery required, long recovery |
| Very Severe | 4.0 – 6.0x | Multiple surgeries, chronic pain |
| Permanent | 5.0 – 10.0x | Disability, TBI, disfigurement |
State-Specific Adjustments
Our calculator applies your state's negligence rules to adjust the estimate based on your share of fault. These rules are established by state legislatures and case law:
- Pure comparative negligence (13 states including California, New York, Florida): Your award is reduced by your fault percentage, even if you're 99% at fault.
- Modified comparative (50% bar) (13 states including Georgia, Colorado, Tennessee): You cannot recover if you are 50% or more at fault.
- Modified comparative (51% bar) (20 states including Texas, Illinois, Ohio, Pennsylvania): You cannot recover if you are more than 50% at fault.
- Contributory negligence (5 jurisdictions: Alabama, Maryland, North Carolina, Virginia, Washington D.C.): Any fault on your part may bar recovery entirely.
Our Data Sources
We maintain a research database of 53 million+ real legal records from publicly available government and court sources. We are actively integrating this data into our calculators to provide more accurate, state-specific estimates:
- National Practitioner Data Bank (NPDB) — 529,000+ medical malpractice payment records mandated by Public Law 99-660, maintained by HRSA
- U.S. Treasury Judgment Fund — 114,000+ federal payment records from the Bureau of the Fiscal Service
- NYC Comptroller — 64,000+ settled claims against New York City
- California Proposition 65 — State settlement data under the Safe Drinking Water and Toxic Enforcement Act
- Los Angeles City Attorney — Municipal settlement records
- City of Chicago — Settlement payment data from the Chicago Data Portal
- City of Philadelphia — Municipal settlement and judgment records from Philadelphia Risk Management
- California Proposition 65 (Judgments) — Judgment data under the Safe Drinking Water and Toxic Enforcement Act, separate from settlements
All data is publicly available under freedom of information laws (FOIA, state equivalents). We do not use any data obtained through paywalls, login walls, or private databases.
Important Limitations
Our calculators provide estimates only. They cannot account for:
- The specific facts of your case (evidence quality, witness availability)
- Insurance policy limits of the at-fault party
- State-specific damage caps (especially in medical malpractice under laws like California's MICRA or Texas §74.301)
- The skill and reputation of your attorney (or the opposing counsel)
- Whether your case goes to trial vs. settles
- Local jury trends and judge preferences
These estimates are not legal advice. Every case is unique. For an accurate assessment of your specific situation, consult with a licensed personal injury attorney in your state.