Calculating a settlement value for pain and suffering can become complex because everyone experiences pain and suffering differently. However, insurance companies and courts use several methods to determine the value of pain and suffering.
This calculation involves taking quantifiable or economic damages, such as your medical expenses, lost wages, and property damage, and multiplying them by a number between 1 and 5. The number you use will depend on factors surrounding your accident, such as the circumstances of your accident, the severity of your injuries, and whether you are still recovering from your injuries.
So, if your medical bills total $6,000 and you lost $2,000 from being off of work, your total cost so far is $8,000. If you use 4 as your multiplier because you suffered broken bones and needed rehabilitation, then multiply $8,000 x 4 to total $32,000.
Permanent injuries, such as a severe traumatic brain injury or paralysis, may use a multiplier of 5 or higher.
Per Diem Method
The per diem (per day) method gives a monetary figure to each day you suffered from your injuries. Some people use their work income as the daily monetary figure for calculation, reasoning that each day they lose income from being off of work due to their injury. Remember you must give a reason to an insurance company or the court as to why you chose this figure. If you have a long-term or permanent injury, you may not want to use this method. We can advise you as to whether this approach will work best for you.
Some insurance companies use a computer software program to calculate damages, with Colossus being the most popular. Colossus evaluates different factors included in a claim, including bodily injuries and non-economic damages.
Non-Economic Damage Awards
Florida’s negligence law does not limit the payout amount for pain and suffering from a personal injury or wrongful death. However, the law limits the amount to $200,000 for claims against state and local governments. State law once capped non-economic damages for medical malpractice at $500,000, but in June 2017, the Florida Supreme Court struck down that limitation.
We Can Help You
The Law Firm of Anidjar & Levine can help you assess the value of your personal injury claim or lawsuit.If you suffered an injury, call us today at 800-747-3733 to schedule a free legal consultation.