Personal Injury Pain and Suffering Calculator
Method 1: The Multiplier Method
Commonly used by insurance adjusters to estimate non-economic damages.
Method 2: The Per Diem Method
Based on a daily rate of compensation for the duration of recovery.
Understanding the Calculation of Pain and Suffering
In personal injury law, "pain and suffering" refers to the physical pain and emotional distress a victim endures as a result of an accident. Unlike medical bills or lost wages (economic damages), pain and suffering are "non-economic damages," making them harder to quantify with a simple receipt.
How Insurance Companies Calculate Pain and Suffering
While there is no fixed legal formula for calculating these damages, two primary methods are widely accepted by insurance adjusters and legal professionals:
1. The Multiplier Method
The multiplier method is the most frequent approach. It involves taking the total sum of economic damages (medical bills, therapy costs, and lost income) and multiplying it by a number between 1.5 and 5. The multiplier is chosen based on factors such as:
- The severity of the injury.
- The length of the recovery period.
- The impact on daily life and activities.
- The degree of fault of the other party.
2. The Per Diem Method
The "Per Diem" (Latin for "by the day") method assigns a specific dollar amount to each day from the date of the accident until the victim reaches Maximum Medical Improvement (MMI). A common approach for determining the daily rate is to use the victim's actual daily earnings, reasoning that the effort to endure pain is at least as valuable as a day's work.
Real-World Example
Imagine Sarah was in a car accident. Her medical bills totaled $10,000 and she lost $2,000 in wages, totaling $12,000 in economic damages. If her injuries were moderate, an adjuster might use a multiplier of 3.
Calculation: $12,000 (Economic) x 3 (Multiplier) = $36,000 for pain and suffering. Her total settlement estimate would be $48,000 ($12,000 + $36,000).
Factors That Influence Your Multiplier
Insurance companies will try to argue for a lower multiplier (e.g., 1.5), while your attorney will push for a higher one (e.g., 4 or 5). Factors that increase the multiplier include permanent disfigurement, the need for ongoing surgery, or clear evidence of emotional trauma like PTSD.