Have you been injured due to the negligence of another and are uncertain how pain and suffering damages are calculated in a personal injury settlement? There are certain factors, as well as mathematical formulas, that are taken into consideration when making a determination regarding pain and suffering injuries.
Determining the amount of financial compensation that should be awarded for pain and suffering can be overly complex and difficult to understand. One essential step that you need to take in a personal injury lawsuit is to hire a knowledgeable attorney who can assist you with understanding how pain and suffering damages are calculated.
What is the Multiplier Method?
One tradition that insurance companies often use to determine pain and suffering damages is to multiply your monetary damages by a number between one and five. The basic idea is that those who have suffered more serious injuries will be assigned a higher number. For instance, if an injury victim is owed $20,000 in economic damages and the insurance company assigns a multiplier value of “3” to their claim, the victim would receive $60,000 for their pain and suffering.
What is the Per Diem Method to Calculate Pain and Suffering Damages?
Insurers also may calculate pain and suffering damages by allocating a certain amount of money to each day that you have suffered from injuries due to your accident. They may determine that you are owed $500 for each day that you have had to deal with physical pain and emotional trauma. You would simply take that number and multiply it by the number of days since the accident occurred. For example, if your accident occurred 90 days previously the insurance company would multiply $500 by 90 days for a total of $45,000.
Are Insurance Companies Fair to the Victim When Calculating Damages for Pain and Suffering?
Sadly, insurance companies frequently do not have an injury victim’s best interests at heart when making financial decisions about pain and suffering damages. Insurance companies are primarily interested in maintaining their profit margins and being accountable to their stockholders, not individuals who have been injured in accidents. Therefore, it is vital that you hire a qualified attorney who can provide you with solid legal representation as you work through the settlement process with the insurance company.
When Should I Hire a Personal Injury Attorney to Help Me With My Claim?
In order to protect your future and obtain financial compensation that is fully favorable to you, it is best to hire a person as soon as possible after you have been injured. Often insurance companies will attempt to settle with injury victims quickly after an accident has occurred. Although the offer may seem tempting, in most cases it is not advisable that a client accept the first offer as the extent of their injuries may not be fully understood.
Before agreeing to any settlement with the insurance company be certain to consult with a personal injury attorney who can advise you of your rights and legal options. Contact our law offices by calling 310-774-4260 and ask to schedule a free consultation to discuss your case.