Car accident settlements derive from a calculation of the cost of many different factors. In addition to lost wages, medical costs and attorney’s fees, most settlements include compensation for the pain and suffering an injured person experienced from their injury. The amount of money to be paid for pain and suffering is difficult to calculate because it is mainly based on speculation. Below is a description of the common considerations and methods used for this type of calculation.
Calculation by Multiplication
Commonly, companies add together the amount of lost income and medical bills and then multiply it by anywhere between 1.5 and 4 for pain and suffering. The percentage multiplied for to determine pain and suffering differs in each insurance company and is extremely difficult, if not impossible, to ascertain.
Daily Amount Calculation
Sometimes, insurance companies will set a fixed rate per day that they will pay an injured party for pain and suffering. Don’t try to determine what that amount is, because no insurance company will ever reveal that information. This calculation is extremely easy, but does not necessarily take into account the specifics of your case.
Ranking Scale Calculation
Some companies will request that the injured party rank the severity of the pain he experiences on a daily basis on a scale of 1-5. Each number on the scale will have corresponding factors that should be present to describe the individual’s pain. This number then corresponds to a dollar amount.
However, sometimes insurance companies will not tell the injured party that they are using this method. Rather, they will look at the party’s medical records to see if he has ever ascribed a pain level number to his injury, for example, after being shown a chart by a doctor or nurse. If more than one description has been made the company would use the average of them. They would then correlate that number to their compensation chart.
Severity of Injury Considerations
A company will usually add more value to pain and suffering if an injury was severe. Examples of this are when an individual loses a limb or the ability to perform a normal bodily function or activity. Depending on the process the company uses, this may mean that the multiplication number or the daily amount will increase.
Getting Legal Help
There is no magical number or method for calculating pain and suffering. Because so much of this type of calculation is estimated, you should seriously consider hiring legal representation. An attorney will be able to assist you with calculations about the value of pain and suffering from your injury.
