This question is quite complicated. First, the claims supervisor, or claims manager, will provide that a certain amount be “set aside” as a potential value of your case. This figure is usually called “reserves.” Such reserves are the outside value that the company has established on your claim. The reserves may change as the case progresses. In some cases, such reserves may equal or exceed what are called policy limits. Policy limits are the outside limit amounts of liability established in the insurance policy of the person or persons who caused your injury.
During the preparation stages of your case, the insurance company will keep track of your medical bills, lost wages, and permanency regarding your injury, and other factors. The company will also take into consideration the quality of evidence against their insured, the quality of your witnesses and their witnesses, extent of liability or your part, and other important considerations such as previous injuries.