If you make a claim after a car accident, you will wonder how much you should ask for and what your claim could be worth. Different auto insurance companies use different methods to determine the value of your car accident settlement. The claim generally includes payment for your medical bills, lost income, and a certain level of compensation for the pain and suffering you’ve dealt with as a result of the car accident.
There are two common ways that a car accident claim is valued so that you and your attorney have an idea about how much you pain and suffering is worth after a car accident.
The Pain & Suffering Multiplier Can Lead to Drastically Larger Car Accident Settlements
The most often used method for determining pain and sufferingpayouts after an auto accident is to multiply the actual damages – your medical costs and lost earnings – by a certain figure. Many car accident attorneys are trained to multiply your actual damages by three to obtain a typical, reasonable damages amount.
Thus, if your medical costs were $5000 and your lost earnings were $1000, you multiply $6000 by 3 and get $18,000. But in recent times, some insurance companies are not as willing to concede the three multiplier as a reasonable way to quantify your pain and suffering after an automobile accident.
Today, the more common approach by most auto insurance companies is to take your actual damages and multiply it by a figure that is determined by a software program. Typically, this type of operation will undervalue your car accident claim. The multiplier depends upon how serious your injuries area, aggravating factors, and how long your recovery is. For example, if you have a broken femur and must have three surgeries, the pain and suffering from this is going to be a lot worse than if you just had your fender damaged.
Thus, in a more serious crash, the multiplier can be three or four, whereas in a fender bender, it would not be more than one or two. The multiplier could be higher if there are aggravating factors, such as the negligent driver was drunk. In that situation, you could use a higher multiplier. Also, if your actions were partially the reason for the crash, a lower multiplier may be used to determine how much your pain and suffering damages are.
Average Car Accident Settlement For Pain & Suffering Can Vary By Insurance Company
Different auto insurance companies use different methods to determine the value of your car accident settlement. The claim generally includes payment for your medical bills, lost income, and a certain level of compensation for the pain and suffering you’ve dealt with as a result of the car accident.
When it comes to car accident settlements, the most important factor to consider is the pain and suffering you have endured. This includes both physical and emotional trauma, which can be difficult to quantify. Most insurance companies will use a multiplier to calculate the value of your pain and suffering. This multiplier is typically based on the actual damages you have suffered. So, if you have medical bills and lost income as a result of the accident, your multiplier will likely be higher than someone who only suffered minor property damage.
It is important to understand how insurance companies evaluate pain and suffering when determining your car accident settlement, as this can help you make an informed decision about the value of your claim. If you have suffered significant injuries or losses due to a car accident, it is in your best interest to seek experienced legal counsel who can work with the insurance company to arrive at a fair multipier for pain & suffering after the auto accident.
Pain and suffering can vary greatly from case to case, so it is important to consider all factors when determining the value of your car accident settlement. If you have been injured in a car accident, keep track of your losses and seek assistance from a qualified legal professional for help with negotiating a fair Car Accident Pain and Suffering Settlement.
The Daily Rate
Some auto insurers today and personal injury attorneys use a daily ‘per diem’ to calculate your pain and suffering in a car accident settlement. Under the per diem method, the amount of money is assigned to every day or week that you suffered from your injuries after a car accident.
For instance, let’s suppose you were rear ended at a stop light, causing a grade 3 whiplash injury. As a result, you incurred medical bills of $5000 and lost wages of $1000 for a total sum of $6000. For 90 days after the crash, you saw your doctor regularly and took pain medication every day. After those 90 days, the pain was less and you could resume many of your normal activities. You may assign a daily value of $200. For the per diem method, multiply 90 times $200 to reach a figure of $18,000.
How is the daily rate chosen? One way is to look at the income that you make in a regular day if you were not hurt. So, if you make $200 on a regular day, but could not work, this could be a reasonable method of valuing your car accident pain and suffering.
It could seem rather arbitrary to choose the per diem number, you and your attorney should be able to explain a good reason why you chose that amount. This is because when you to before the jury or judge, you cannot just say your pain and suffering is worth $XXX and have no reason for it.
Arriving at a Fair Value
We think the most efficient and systematic method to value your pain and suffering is to use the per diem and car accident pain & suffering multiplier to get a rough figure. From that point, you could need to adjust the expectations you have based upon several case factors, such as how severe the injuries were, whether other people were injured, whether you were out of work for a long time, and whether you seem to be a strong witness for your behalf.
Putting these factors together will help you to estimate a good and reasonable value for your car accident settlement. For example, if the multiplier provides a value of $18,000 and the per diem provides a value of $30,000, you could choose a rough pain and suffering amount of $24,000.
Once you and your attorney devise a number that you think works for you, then you can write a car accident settlement demand letter to the insurance company.
Find out the maximum compensation you could receive.
