When calculating an individual’s pain and suffering in a car accident case, insurance firms often use one of several methods, such as the multiplier or per diem approach. Completing these calculations is challenging, as it is more difficult to prove these damages compared to repair bills or medical expenses.
Due to this, it can be beneficial for individuals to understand the steps involved in calculating pain and suffering in car accident cases, so they can check to see whether any awarded compensation is adequate.
Understanding Pain and Suffering
Pain and suffering refer to the emotional or physical trauma that individuals receive when injured in accidents. For instance, individuals involved in car accidents may gain back or neck injuries preventing them from completing daily activities and working.
Additionally, those involved in car accidents might suffer from burns resulting in permanent disfigurement or emotional trauma that prevents these individuals from sleeping. All of the above may have short- or long-term consequences for these individuals, and placing a monetary value on these damages can be challenging.
Tips for Improving an Insurance Firm’s Ability To Calculate Pain and Suffering
Find out how insurance firms calculate pain and suffering in car accident cases and review the following tips to make it easier for these companies to complete these calculations:
- See a doctor. If involved in a car accident, visit a doctor immediately and consider seeing them again if injuries arise after the first consultation. Doing this adds more value to the injury, as doctors can provide vital documentation to support any personal injury claim.
- Collate evidence. While insurance firms can automatically access an individual’s medical records, it is a good idea to collate additional evidence to support a personal injury claim and make it easier for these companies to calculate pain and suffering. This includes images of the injuries, medical bills and medication costs, and documentation from an employer proving loss of earnings during any time taken off from work.
Methods for Calculating Pain and Suffering in Car Accident Cases
Below is information regarding the two main methods for calculating pain and suffering in car accident cases:
Multiplier Method
The vast majority of insurance firms use the multiplier approach to complete pain and suffering calculations. This is an equation whereby the insurance company determines the damages incurred as a result of the injuries and multiplies this figure by another number.
This number, which is normally between 1.5-5, depends on the significance of the individual’s pain and suffering. For instance, if an individual gains a permanent disability because of a car accident, this number is likely closer to five. In contrast, if the injury is a minor neck strain, the multiplier is likely toward the lower end of this scale.
Using the above example, consider that an individual suffers from a permanent disability due to a car accident. Here, the insurance company determines the actual damages to be $10,000 and, due to the severity of the injuries, multiplies this figure by four to determine the pain and suffering damages. In this example, the multiplier method helps the insurance company to identify these damages as $40,000.
Per Diem Approach
While used less frequently, some insurance firms opt for the per diem approach instead to calculate pain and suffering in car accident cases. This involves assigning a monetary value to a day’s worth of damages, which is normally how much the individual earns daily from their job.
Following this, the company multiplies this value by the length of time that the injuries lasted. For instance, if an individual earns $200 and has injuries for 30 days, the per diem approach leads to a pain and suffering calculation of $6000.
Determining Liability in a Car Accident
Determining liability in a car accident is a complex process that involves examining various factors to establish who is at fault. It typically requires a thorough investigation of the accident scene, witness statements, police reports, and any available evidence such as photographs or video footage. The goal is to determine which party’s negligence or wrongful actions caused the accident and subsequent damages.
Liability can be attributed to one or multiple vehicles, including drivers, vehicle owners, pedestrians, or even government entities responsible for road maintenance. Comparative negligence laws in some jurisdictions may assign a percentage of fault to each party involved based on their contribution to the accident. Ultimately, the determination of liability in a car accident is crucial for insurance claims, legal proceedings, and ensuring that the responsible party takes appropriate financial and legal responsibility for the damages caused.
Time Limits for Car Accident Cases
For those who want to inquire about potential compensation for their involvement in a car accident, it is worth remembering that it is necessary to submit a claim as soon as possible. All states have time limits for filing lawsuits involving personal injury claims. With this in mind, it is a good idea for these people to check the laws in their state to avoid missing these deadlines.
Contact a Car Accident Lawyer
If involved in a car accident, contacting a seasoned car accident lawyer might be a good idea. An attorney can advise individuals whether they can receive compensation as a result of the incident and explain the steps involved in calculating pain and suffering in car accident cases in more detail. Consider contacting a trial attorney to discuss your case.
