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How We Calculate Settlement Estimates

Transparency matters. Here's exactly how our calculators work, what data they use, and what their limitations are.

Last reviewed: March 2026

The Multiplier Method

Insurance companies like State Farm, GEICO, Progressive, and 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:

Settlement = (Medical Bills × Severity Multiplier) + Lost Wages + Property Damage + Out-of-Pocket Expenses

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 SeverityMultiplier RangeExamples
Minor1.5 – 3.0xSoft tissue, sprains, bruises
Moderate2.0 – 4.0xFractures, herniated discs
Severe3.0 – 5.0xSurgery required, long recovery
Very Severe4.0 – 6.0xMultiple surgeries, chronic pain
Permanent5.0 – 10.0xDisability, 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 925,000+ real settlement and judgment 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

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.

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© 2026 Settlement Insight. All rights reserved. This site is not a law firm and does not provide legal advice. Settlement estimates are based on statistical models and historical data and do not guarantee any specific outcome. Every case is unique. Consult with a licensed attorney in your state for advice specific to your situation.