How Is Pain & Suffering Computed in Auto Accident Settlement?
In a car accident, physical injuries are not the only ones that you can sustain. You can also experience pain and suffering, which is factored into settlements. It is essential for anyone filing a claim to know how to calculate pain and suffering from a car accident, understand how insurance companies evaluate it and recognize what factors affect the settlement amount. This article will break down these elements to help you navigate the process.
Understanding pain and suffering
When you say pain and suffering, they’re the physical and emotional distress a person experiences after a car accident. They’re considered non-economic damages. They reflect the personal and subjective experience of your suffering, which can be tough to measure.
1. Categories of pain and suffering
- Physical Pain: This covers discomfort from injuries like fractures, soft tissue injuries, nerve damage, or long-term pain that might persist for years.
- Emotional Distress: Emotional suffering may involve anxiety, depression, insomnia, or PTSD, which can significantly impact a victim’s quality of life.
Methods of calculating pain and suffering
1. Per Diem Method
The per diem method figures out pain and suffering by setting a daily rate for each day the victim suffers after the accident. It works by estimating how much the person could have earned each day if they hadn’t been injured.
For example:
- Determine Daily Rate: If a person usually earns $200 per day.
- Calculate Duration: For 20 weeks (or 140 days) of suffering, the calculation is:
- 140 days x $200 per day = $28,000 in pain and suffering damages
2. Multiplier Method
This method will add up all of the economic damages you incurred during the accident. The total sum will then be multiplied by a number between 1.5 and 5. The number will depend on how serious the injuries are, with 5 representing the most serious.
For example:
- Add Economic Damages: $20,000 (medical bills) + $10,000 (lost wages) + $10,000 (expenses) = $40,000 in total economic damages
- Apply Multiplier: Using a multiplier of 3:
- $40,000 x 3 = $120,000 in pain and suffering damages
How insurance companies calculate pain and suffering
Insurance companies don’t just rely on one method. A mixture of different methods is what they’ll use, along with internal guidelines. They begin by assessing how severe your injuries are, the time it takes for you to recover, and how your daily life has been impacted. The company will also look at how similar cases were settled in the past to help guide their decision. Adjustments are often made based on the unique details of each case, as well as any precedent from previous settlements.
Factors influencing pain and suffering settlements
- Severity of Injuries: How severe your injuries are greatly affects the amount of compensation you might receive for pain and suffering. More serious injuries, like those that lead to long-term pain or disabilities, usually result in higher payouts. For instance, if your injury requires extensive treatment or causes lasting discomfort, you can expect more compensation than for a minor injury that heals quickly.
- Recovery Time: The amount of time it takes for you to recover from the accident impacts your settlement. Longer recovery times usually result in higher pain and suffering awards. If you’re dealing with prolonged physical or emotional distress, the insurance company will consider this when calculating your compensation.
- Impact on Quality of Life: How your injuries affect your enjoyment of life and ability to participate in activities you once enjoyed can influence the settlement amount. If your injuries stop you from participating in hobbies, working, or socializing, this effect is considered in your compensation.
- Victim’s Age and Health: Your age and overall health before the accident also affect the settlement amount. Compensation amounts can vary based on age and health. Younger and healthier individuals may receive different compensation than older adults or those with pre-existing health conditions. The insurance company considers how your health and age might impact your recovery and daily life.
Proving pain and suffering
- Medical Documentation: To support your claim, gather all medical records related to your injuries. This includes diagnoses, treatment plans, and any prescriptions. These records offer clear proof of the physical pain and suffering you’ve endured.
- Receipts for Accident-Related Expenses: Save all receipts for expenses related to your accident. This includes costs for hiring help, lost wages due to missed work, and travel expenses for medical appointments. These receipts help illustrate the financial impact of your pain and suffering.
- Diaries and Journals: Maintaining a written or video diary can be helpful. Documenting your daily experiences, pain levels, and how your life has changed since the accident can provide strong evidence of both physical and emotional suffering.
- Witness Statements: Statements from friends, family, or other witnesses can support your claim. These people can describe changes in your behavior or lifestyle since the accident, which can help prove the extent of your pain and suffering.
- Expert Testimony: Experts can provide valuable support for your claim. Medical professionals can explain how your injuries have affected you, accident reconstruction specialists can detail how the accident happened, and mental health experts can assess the emotional impact. Their testimony can add credibility to your claim.
Average settlement amounts
Compensation for pain and suffering can range from a few thousand to several hundred thousand dollars. Typically, the average settlement is about $37,248.62. However, this average includes cases with minor to moderate injuries, so the amount might be higher or lower depending on the severity of your injuries and other factors.
Creative considerations
Managing a car accident claim can be tricky, especially when dealing with the more abstract aspects like pain and suffering. An experienced personal injury lawyer can make a big difference. They will guide you through the process of calculating and proving your pain and suffering, making sure you get the compensation you deserve. With the right help, you can turn a tough situation into a fair outcome.
Turning pain into fair compensation
Understanding car accident pain and suffering claims can seem overwhelming, but knowing how compensation is calculated helps make the process easier. Whether dealing with physical pain or emotional stress, understanding the calculation methods—like the per diem or multiplier approach—can guide you in seeking fair compensation. It’s important to recognize that compensation should cover all aspects of your suffering, not just your physical injuries.
With the right documentation and the support of a skilled attorney, you can ensure that your claim reflects your full experience. Although the path to recovery can be tough, having the right knowledge and assistance can help turn your challenging situation into a fair outcome.
