How Pain and Suffering Is Calculated in U.S. Injury Cases

Medical bills come with a clear number attached, but physical and emotional pain do not. Even so, pain and suffering often make up the largest part of a settlement or court award. 

It can sometimes even far exceed the actual cost of medical treatment. Because of this, it is important to understand how these values are calculated. 

What Pain And Suffering Actually Covers

“Pain and suffering” is a type of non-economic damage that includes much more than just physical discomfort. It covers:

• chronic physical pain caused by the injury, 
• emotional struggles like anxiety and depression, 
• and the loss of enjoyment of your hobbies and daily life,
• sleep issues and lifestyle limitations, 
• and psychological trauma or PTSD. 

According to the Insurance Information Institute, these non-economic damages make up the largest portion of total compensation in serious cases. 

The Two Main Calculation Methods

There is no single formula for everyone. Insurance adjusters, lawyers, and juries use two main approaches. 

The first is the Multiplier Method, where your financial losses are multiplied by a number between 1.5 and 5. The number depends on how severe the injury is, how long it takes to recover, and its impact on your life. 

A more serious or permanent injury leads to a higher multiplier. For example, $60,000 in medical bills multiplied by 3 results in $240,000 for pain and suffering, making the total claim $160,000. This multiplier is decided based on medical proof and how much your lifestyle has changed. 

The second approach is the Per Diem Method. This assigns a daily dollar amount to your pain, which is often based on your daily work earnings. It is then multiplied by the number of days you have lived with the injury. 

For instance, $200 per day over 500 days of recovery equals $100,000 in pain and suffering, and for permanent injuries, this calculation covers your entire life expectancy.

What Actually Influences The Number

Both methods are just starting points, not final answers. Several factors can move the final amount up or down, including:

• Injury severity and permanence- Permanent disabilities result in much higher multipliers than injuries that fully heal.

• Medical documentation quality- Clear and detailed treatment records make a claim much stronger.

• Consistency of treatment- Taking breaks or having gaps in your medical care can make you look less believable to insurers.

• Personal injury journal entries- Keeping a daily record of your pain and struggles as they happen carries a lot of weight with juries and adjusters.

• Expert testimony- Support from doctors and mental health experts provides official proof for your claims.

A 2021 study by Jury Verdict Research found that people with documented mental health impacts received pain and suffering awards that averaged 40% higher than those who only had proof of physical injuries.

How Insurance Companies Approach It

Adjusters typically start with a low offer by using the smallest possible multipliers and questioning how long or how bad your suffering actually is. They look for breaks in your medical treatment, past health issues, or changes in your story to justify paying out less money.

Many insurance companies use specialized software, and the most famous is called Colossus. This software uses a computer formula to decide what a claim is worth. These automated systems often value your pain and suffering much lower than a human jury would. 

It is important to know if the insurance company is using a computer program to lower your claim’s value. You have to be careful about that during the negotiations. 

In serious personal injury cases, having a good lawyer is crucial to know the difference between a low and a good settlement.