How Much Do Insurance Companies Pay for Pain and Suffering?

Insurance companies typically don’t have a set amount they pay for pain and suffering. The compensation varies widely depending on the specifics of each case, including the severity of injuries, impact on daily life, and long-term consequences.

Many times, the value of pain and suffering damages depends on negotiation. A Raleigh personal injury lawyer can work with your insurer to reach a fair value. Quite often, the value of your economic damages, the damages that can be easily calculated, form a baseline for pain and suffering damages.

What Is Pain and Suffering in Personal Injury Cases?

You may be entitled to compensation for your losses when injured due to someone else’s negligence. These losses often include more than just medical bills and lost wages; they can also encompass the physical pain and emotional suffering you’ve endured.

Pain and suffering damages are meant to compensate you for the physical discomfort and emotional distress caused by your injuries. This can include ongoing pain, loss of enjoyment of life, anxiety, depression, and other negative impacts on your well-being.

Insurance companies recognize pain and suffering as legitimate losses in personal injury claims. However, calculating a fair amount for these intangible losses isn’t easy. There’s no bill, quote, or receipt to show the cost of your pain.

Factors That Influence the Value

Several factors can affect how much an insurance company might pay for pain and suffering. The severity of your injuries plays a significant role. Generally, more severe injuries that cause intense pain or have long-lasting effects may result in higher compensation. 

The duration of your recovery also influences the amount. Longer recovery periods often lead to higher pain and suffering damages because of the increased span of discomfort and disruption to your life. 

Your age and overall health before the accident can also impact compensation. Younger individuals might receive higher awards due to potentially longer-lasting effects on their lives. For example, someone paralyzed at age 30 will need to be cared for longer than someone at age 80, so they need more compensation.

Methods Used to Determine Pain and Suffering Damages

Insurance companies, as do personal injury lawyers, use various methods to calculate pain and suffering compensation. Although it is a negotiated value, these methods can explain how much insurance companies pay for pain and suffering damages.

The Multiplier Method

One frequently used approach is the multiplier method. In this calculation, the insurance company multiplies your economic damages (medical bills, lost wages) by a number typically between 1 and 5.

For example, if your medical bills and lost wages total $10,000, and a multiplier of 3 is used, your pain and suffering compensation might be $30,000. The multiplier chosen often depends on the severity of your injuries and other case-specific factors.

The Per Diem Method

Another approach is the per diem method. This assigns a value based on your daily earnings and multiplies it for each day you experience pain.

For instance, if you suffered for 100 days and your per diem rate is $200, your compensation might be $20,000.

Computerized Programs

Many insurance companies now use specialized software to calculate pain and suffering damages. These programs consider various factors, including the type of injury, treatment duration, and long-term prognosis.

While these programs aim for consistency, they may not account for the unique aspects of your situation. The advocacy of a personal injury attorney can help ensure you get a fair amount.

Proving Pain and Suffering

One common challenge is proving the extent of your pain and suffering. Unlike medical bills, there’s no clear monetary value attached to how you feel after an accident. Documenting your experiences through pain journals, mental health records, and testimony from friends and family can help your claim.

Insurance companies may also dispute the connection between the accident and your pain and suffering, especially for pre-existing conditions or delayed onset symptoms. Clear medical documentation and expert testimony can help establish a link between your pain and suffering and your injuries.

What if the Insurance Company’s Offer Is Too Low?

You have options if you believe your insurance company’s offer for pain and suffering is too low. You can counter their offer with a well-documented justification for a higher amount. This is where having detailed records of your experiences and their impact on your life helps.

If negotiations reach an impasse, you may need to consider legal action. Filing a lawsuit doesn’t necessarily mean going to trial, but it shows the insurance company that you’re serious about receiving fair compensation. You can do this with the help of a personal injury lawyer.

Seek Fair Compensation With Whitley Law Firm

How much your insurance company will pay for pain and suffering depends on the economic value of your case and negotiations between the insurer, you, and your lawyer. Every case is unique.

If you’re dealing with the aftermath of an injury and struggling to get fair compensation for your pain and suffering, we encourage you to contact Whitley Law Firm. Our experienced team can work with your insurer to come to a fair value for your pain and suffering damages.