In case you are laying claim for your injury after a car accident, it is possible that you are confused regarding the value of the claim. There are several methods used by insurance companies to calculate this value. It usually includes compensation on lost wages, medical bills, and “pain and suffering”. Below is a discussion on the ways to calculate the value of pain and suffering in car accident cases.
The Multiplier Method
In the most commonly used method for finding out the damages of pain and suffering, the actual damages are multiplied by a fixed number. In many cases, accident injury lawyers are instructed to multiply the value of actual damages with three and reach an amount that is valid. For instance, if the medical bills are $5,000.00 and the wages you lost added up to $1,000.00, the total of $6,000.00 is multiplied with a fixed factor of 3 to obtain $18,000.00. This method has received criticism recently and the fixed multiple is argued to be an unfair method to determine the value of pain and suffering.
Nowadays, complex software programs are used to determine a figure which is then used to multiply the total sum of losses. The multiplier is determined by considering the seriousness of the injuries caused, length of recovery, and aggravating circumstances. For instance, if someone suffers a broken femur and faces several surgeries, there would be a higher degree of pain and suffering than a small injury.
Remember that if you keep treating the smaller injuries, it will not add value to your case, leaving you with inadequate compensation.
The Daily Rate Method
In this method, an amount of money is allotted to every day or week while you recover from the injury caused by the car accident.
For instance, if you paid a medical bill of $5,000.00 and lost $1,000.00 in wages, it brings the total to $6,000.00. The person might have consulted a physician regularly along with medication. Let us assume that the pain receded after 3 months and the person was able to resume normal activities. In this case, a daily value of $200.00 could be assigned. Under the daily rate method, you multiply the value by 90 days to reach a total of $18,000.00.
One of the effective ways to determine this daily rate would be to calculate the daily income. Regardless of the amount, you should be able to justify the amount.
It is advisable to consult a car accident lawyer in the event of a car accident to get proper guidance regarding the calculation of pain and suffering in a legitimate way.