How Do Insurance Companies Calculate Pain and Suffering for a Car Accident Claim?
If you have suffered significant physical, mental, and emotional trauma due to a car accident, you are entitled to claim compensation for it. But how do insurance companies value pain and suffering? It can be a convoluted process as it’s an intangible matter.
There are two methods they typically use: the per diem and the multiplier approaches.
Methods Used to Calculate Pain and Suffering in a Car Accident Case
Pain and suffering, simply defined, are the physical and emotional trauma you experience in a serious car accident. The crash may have left you with a physical injury that will affect your activity for the rest of your life, which can cause significant mental and emotional strain. An inability may also impact your ability to earn a living. Trauma from a car wreck can impact your well-being in various ways.
How pain and suffering are determined plays a role in the compensation you may claim from a personal injury lawsuit or an insurance company.
Calculating Methods
An insurance company will evaluate the circumstances surrounding your accident to decide on a financial figure for your pain and suffering.
The Multiplier Method
This method is essentially an equation that helps insurance companies to work out a compensation amount. The method is to add up the figure representing the damages and multiply that total by a figure between 1.5 and five. The number you times the damages by is called the multiplier. The multiplier is chosen depending on how severe your accident is.
The higher the multiplier, the more serious suffering you have gone through. For example, if your accident has left you with a permanent disability, you would multiply closer to five.
Per Diem Method
The per diem approach is not used as often as the multiplier method. In essence, this method assigns a monetary value in the form of a day’s wage and multiplies it by the number of days injuries impacted you.
Be Sure to Follow Protocol
To claim pain and suffering, you will need to take certain actions and have certain matters in place. Your insurance company will need to review all the evidence surrounding your accident to put a value on your compensation.
Get Medical Attention
If you don’t go to the hospital or at least to a doctor after your crash, an insurance company will probably not attach much value to the accident pain and suffering factor. Sometimes injuries such as back and neck sprains, whiplash, or a concussion may only arise a couple of days after an accident. It is important to visit a medical professional to make sure you get the right treatment and create a paper trail for your case. A doctor will note and document any delayed symptoms, which you can use as evidence.
Other Evidence an Insurance Company May Require
To develop your case, an insurance company will need to evaluate several records related to the accident. So, be sure to keep everything in a file where it is easy to find and give to them when necessary. They will want information such as:
- Medical records and bills
- Prescriptions and their costs
- Photographic images of injuries
- Receipts for hire or purchase of assistive devices such as crutches or wheelchairs
- A record from your employer of your days missed at work
Time is of the Essence
It is crucial to note that there is a time limit on filing for your personal injury lawsuit. Once this window has closed, you normally cannot apply. Each state has different time frames within which you must file your case. It is best to consult with a personal injury or auto accident lawyer to find out the steps you need to take to file your case effectively.
If You Were Injured in a Car Wreck Call West Houston Injury Attorney Joe Stephens Now
Being involved in a serious accident is extremely stressful. It helps to have a professional handle your case for you so you can focus on getting well again. If you or a loved one have been injured in a car wreck in Texas, call auto accident attorney Joe Stephens now.
If you’ve been injured by the negligence of another, you could hire any personal injury lawyer, or you can hire a West Houston lawyer that specializes in automobile accident cases. Joe Stephens has been defending injury victims in Texas for over 3 decades from negligent individuals, companies, and greedy insurance companies. As an experienced auto wreck lawyer in Katy, Joe handles all cases personally, and his staff is always available to answer questions.
The Stephens Law Firm, Car Accident Lawyers handles auto accident lawsuits across Texas, including these Houston cities.