If you were injured due to someone else’s negligence, you could seek monetary compensation for your damages. While you may assume that you can only receive compensation for your medical bills and other out-of-pocket expenses, you can also seek compensation for your pain and suffering. Non-economic damages represent your subjective losses. However, assigning a monetary value for these intangible losses is challenging. Please continue reading to learn how insurance companies calculate pain and suffering and how our reliable Prince George’s County Personal Injury Lawyers can help you fight for the maximum compensation you’re entitled to. 

How is Pain and Suffering Calculated After an Accident?

In the legal sense, “pain and suffering” refers to the physical and emotional injuries that a victim suffers following an accident. Essentially, any physical pain or emotional distress a victim suffers after an accident qualifies as pain and suffering.

While there’s no universal formula, insurance companies will use one of two methods to calculate pain and suffering. The first method is the “multiplier” method. This practice is used to multiply the plaintiff’s actual economic damages by a factor between 1 and 5, depending on the severity of your injuries. If a victim suffers a catastrophic injury, they would use a factor of 5, while those with minor injuries would use a factor of 2 or 3. For example, if a victim breaks their arm and incurs $4,000 in medical bills. The insurance company may multiply the total of your economic damages by a factor of three and conclude that $12,000 is a reasonable amount for pain and suffering.

The second method insurance companies may use to determine a reasonable amount for pain and suffering is the “per diem” method. The per diem or daily rate method assigns a monetary value to every day your pain persists. That number is then multiplied by the number of days you suffered. For example, if $100 is assigned every day, your pain persists, and you suffer for 100 days, the total amount for your pain and suffering would equal $10,000.

When Are These Methods Not Appropriate?

Sometimes, the multiplier and per diem methods aren’t appropriate in determining the value of pain and suffering. This is usually when an injury isn’t expected to leave lasting damage and doesn’t require substantial treatment to make a full medical recovery. For example, if a victim suffers an injury resulting in minor burns, the treatment won’t be astronomically expensive. However, the scarring from burns can last a lifetime. Therefore, more appropriate approaches are needed. If this is the case, it’s in your best interest to enlist the help of an experienced attorney who can help you fight for the total and fair compensation you deserve.

If you’ve been injured in a car accident, please don’t hesitate to contact a determined Prince George’s County personal injury attorney, who can help you navigate your legal options. At Timian & Fawcett, LLC, we are prepared to help you fight for the just compensation you need to get your life back on track.