Curious about how much your car accident settlement could be worth?
The shocking truth is most victims don’t realize pain and suffering damages can account for a large portion of your final settlement.
The immediate concerns after a vehicle collision are medical expenses and lost wages…
But what about the pain?
What about not sleeping well at night because you can’t get comfortable?
You know…the stuff we can’t slap a receipt on.
Let’s dig into how pain and suffering damages work in car accident settlements. Plus the methods insurance companies use to value your claim and tips to maximize your payout…
What You’ll Learn
- What Are Pain and Suffering Damages?
- How Do Insurance Companies Calculate Your Settlement?
- How To Calculate Pain and Suffering: 2 Methods
- Get Maximum Value For Your Auto Accident Settlement
What Are Pain and Suffering Damages?
When you’re injured in an accident, pain and suffering damages allow you to seek compensation for injuries that don’t have a specific dollar amount.
Unlike a hospital bill or property damage estimate, there’s no definitive number we can assign to:
- Physical Pain & Discomfort
- Emotional Trauma And Anger
- Inability to Sleep or Loss of Enjoyment
These damages are considered non-economic losses because they affect your overall quality of life after an accident.
In many cases…
Think of economic damages as the tip of the iceberg. They’re easy to identify and calculate. But once you get past that tip, there’s a whole world of complications that arise with your injury.
Continuing with the iceberg analogy…
Pain and suffering represents the mass below the water. Just because you can’t see it, doesn’t mean it’s not there.
Insurance companies have formulas to calculate these damages. When seeking an auto accident settlement, a qualified Athens Car Accident Lawyer can work these damages into your injury claim.
Examples of pain and suffering include:
- Physical pain caused by your injuries
- Emotional suffering and stress
- Loss of enjoyment
- Disfigurement
- Traumatic experiences
Keep in mind, pain and suffering damages are separate from economic losses like medical bills and lost wages. However, they often make up the largest portion of your settlement.
How Insurance Companies Calculate Your Settlement
Insurance adjusters aren’t magicians that can pull settlement numbers out of nowhere.
Companies have preferred methods for calculating what your pain and suffering injuries are worth.
Knowing what they do will give you a huge advantage when negotiating your settlement.
The starting point for every injury claim is economic damages.
These are items that have actual dollar amounts attached to them. Things like:
- Medical bills
- Lost income
- Property damage
Once they have this number, insurance companies use multipliers to arrive at a value for your noneconomic damages. These include injuries and losses that don’t have definite costs.
Recent studies show the average car accident settlement is just over $30k.
But that doesn’t mean maximum payouts don’t range well into six figures.
If you can prove substantial injuries that meet the criteria for pain and suffering damages, your settlement could be much higher.
Bottom line…
The better you can document these losses, the higher your settlement will be.
How To Calculate Pain and Suffering: 2 Methods
Insurance companies use two methods when calculating pain and suffering damages. The multiplier method is by far the most common technique used.
Multiplier Method
In the multiplier method, insurance companies take your economic damages and multiply that figure by a certain number.
Essentially…
That number (or multiplier) is supposed to reflect the severity of your injuries. The worse the injuries, the higher the number.
Insurance companies usually start with multipliers between 1.5 and 5. But severe injuries can range up to 10 or more.
After adding up all your economic damages…
Let’s say your total medical expenses equal $20k. Your insurance company could decide to use a multiplier of 3 based on the severity of your injuries. That would equal $60k for pain and suffering damages.
Factors affecting multiplier:
- Injury severity
- Recovery time
- Permanent Damage
- Lost ability to do daily activities
- Ability to prove fault
The more severe and life altering the injuries, the higher your multiplier will likely be.
Major injuries that require surgeries or lengthy recoveries typically fall between 3-5.
Some examples of factors that could increase the multiplier include:
- Broken bones = 2x
- Traumatic Brain Injury = 4x or 5x
Soft tissue injuries can vary depending on your recovery.
Permanent injuries that affect your mobility could also push that number even higher.
Per Diem Method
Insurance companies can also use a daily rate to value your pain and suffering.
To calculate this amount…
They will take your injuries and place a dollar amount on a “per day” basis.
Some attorneys use the victim’s daily wage as a baseline.
If your job pays you ‘X’ amount per day, your pain and suffering is worth at least that much.
Multiply that daily rate by the number of days you’ve suffered.
This method works well for injuries that have specific recovery times.
Permanent injuries with no real ending date are harder to value using this method.
Tips For Maximizing Your Auto Accident Settlement
Document, Document, Document
It can’t be stated enough.
Keep a journal of your injuries from day one.
Document any problems you have while healing. Take plenty of pictures of visible injuries during your recovery.
Also include records from:
- Doctors appointments
- Medication receipts
- Therapist visits
Ask family members to write down a statement about how the accident impacted you.
Tips to Remember…
Post-accident lawsuits are rarely cut and dry.
Insurance companies often low-ball victims hoping they’ll accept the first offer. Studies show only about 4-5% of injury cases go to trial. So majority of cases are settled through negotiation.
The process can take time.
The average settlement can take anywhere from 6 months to a year. At-fault cases that go to trial can take 2 years or more to resolve.
Don’t post on social media.
Take that hike photo you loved so much and throw it away.
Insurance adjusters search social media for anything that can dispute your injuries.
Consider Hiring An Attorney
Need help with your settlement? Hire an attorney with experience in these type of cases.
They know how insurance companies work. An attorney can identify pain and suffering damages you may have left out of your claim.
Plus, they know how to fight for you!
Final Thoughts
Don’t forget about pain and suffering when negotiating your auto accident settlement.
Your settlement should account for all losses related to the accident. This includes injuries that don’t have a specific monetary value.
As long as you can prove these damages through doctors notes and other records, they can be factored into your settlement.
