Pain and suffering refer to the physical pain and emotional distress a person experiences after an accident. Unlike medical bills or lost wages, pain and suffering do not have a clear financial value. Insurance companies use various methods to calculate how much compensation a person should receive for these damages.
The multiplier method
One common way insurers evaluate pain and suffering is through the multiplier method. This approach takes the total economic damages, such as medical expenses and lost wages, and multiplies them by a number between 1.5 and 5. The severity of the injury, recovery time, and long-term impact determine the multiplier. For example, a minor injury with a quick recovery may use a lower multiplier, while a severe or permanent injury justifies a higher one.
The per diem method
Another approach is the per diem method, which assigns a daily dollar amount to the individual’s pain and suffering. This rate is then multiplied by the number of days the person suffers from their injuries. Some insurers base the daily rate on the injured individual’s daily earnings, while others use a standard rate. The goal is to estimate a reasonable value for the physical and emotional toll of the injury.
Factors that affect pain and suffering calculations
Insurance companies consider several factors when determining a fair settlement. The severity of the injury, medical treatment required, and long-term effects play a major role. Documentation from doctors, therapists, and other medical professionals helps strengthen a claim. Evidence such as personal journals, witness statements, and expert testimony may also support a higher settlement.
A well-documented claim improves the chances of receiving fair compensation. Detailed medical records, consistent treatment, and clear evidence of emotional distress help justify a higher payout. Understanding how insurers evaluate pain and suffering allows injury claimants to seek the compensation they deserve.