How Much Do Insurance Companies Pay for Pain and Suffering?

When someone is injured due to someone else’s negligence, their life can be turned upside down. Besides the physical pain and emotional distress, there are mounting medical expenses and loss of wages, and there can be long-term effects on their quality of life.

Personal injury cases are common in the United States, many involving settlements for pain and suffering damages.

For individuals who have experienced an unfortunate event that has caused them injury, it can be helpful to understand pain and suffering damages, how they are calculated, and how factors such as injury severity, medical costs, and jurisdiction can influence the amount of compensation awarded. This can help them decide whether to submit a personal injury claim.

It is also essential to understand the role of a personal injury attorney and how they can assist individuals by helping them claim the compensation they deserve.

Insurance companies pay out different amounts depending on the case, so having a personal injury lawyer to provide guidance can help manage your expectations while helping you make the best out of a bad situation.

What is Pain and Suffering?

Pain and suffering damages refer to compensation awarded for a victim’s physical and emotional distress due to an injury.

While economic damages, like expenses and loss of wages, are relatively easy to quantify, pain and suffering are more subjective and can vary widely from case to case. Proving pain and suffering can be complex due to their subjective nature, but individuals can take various steps to give themselves the best chance of claiming damages.

There are two primary components of pain and suffering:

• Physical pain and suffering: This includes the actual physical injuries the victim has sustained and the future discomfort or limitations they may experience due to the injury.
• Emotional pain and suffering: This involves the emotional and mental anguish the victim suffers due to the injury. It can include conditions such as anxiety, depression, insomnia, and loss of enjoyment of life.

When calculating damages for pain and suffering in personal injury claims, insurance companies consider the injury’s short-term and long-term impact on the victim’s life. These damages are essential to settlements, aiming to compensate for pain beyond medical costs and loss of wages.

Factors Affecting Pain and Suffering Awards From an Insurance Company

There is no one-size-fits-all approach to determining how much insurance companies pay for pain and suffering, as each case is unique.

Numerous factors, such as the nature of the injury, the victim’s circumstances, and even the laws in the jurisdiction where the claim is filed, can significantly influence the final amount. Some of these factors can drastically affect compensation, which we’ll explore in greater detail in this section.

Severity of the Injury

The severity of an injury is one of the most crucial factors in determining the amount of pain and suffering damages. More severe injuries, such as traumatic brain injuries, spinal cord damage, or permanent disfigurement, generally result in higher compensation. The logic is simple: the more severe the injury, the more pain and suffering the victim experiences.

For example, an individual suffering from a broken arm may receive less pain and suffering damages compared to someone who becomes paralyzed due to a spinal cord injury. The emotional toll, medical treatment, and rehabilitation required for serious injuries are usually more extensive, warranting higher compensation.

Medical Expenses

The total amount of medical bills incurred due to the injury also plays a role in determining pain and suffering compensation. The cost of surgeries, hospital stays, physical therapy, and other necessary treatments clearly indicates the injury’s severity. As a result, insurance companies often use medical treatment costs as a baseline to calculate the amount of pain and suffering.

For example, if a person’s medical bills for an injury total $50,000, the insurance company might use that figure to gauge how much additional compensation should be awarded for pain and suffering. The higher the cost of treatment, the more likely it is that the pain and suffering award will be substantial.

Lost Wages and Earning Capacity

Beyond medical bills, loss of wages and diminished earning capacity are also considered when determining pain and suffering damages in a personal injury case.

If an injury prevents the victim from working, they not only lose income but also experience additional stress and hardship. Moreover, the emotional toll can be significant if the injury affects their ability to work in the future or forces them to change careers.

For instance, if an individual has to take a lower-paying job due to physical limitations caused by the injury, the insurance company may increase the pain and suffering award to compensate for the long-term impact on the victim’s career and lifestyle.

Quality of Life

The effect an injury has on the victim’s quality of life is a key factor in determining how much compensation they can receive for pain and suffering damages. If the injury prevents the victim from enjoying activities they once loved or causes chronic pain that hinders their daily life, the compensation amount may be higher.

For example, someone who was an avid runner before an accident but now suffers from chronic pain and is unable to engage in physical activities will likely receive a higher settlement for pain and suffering. Insurance companies consider how much the injury affects the victim’s overall happiness and well-being.

Jurisdiction

The laws of the state where the personal injury case is filed can also impact the amount of pain and suffering damages awarded.

Some states impose caps on non-economic damages, including pain and suffering, which can limit the amount a victim can receive. Other states may allow for higher awards, particularly in cases involving severe injuries or clear instances of negligence.

For instance, California caps damages related to pain and suffering in medical malpractice cases at $250,000, while other types of personal injury cases may not have such limitations. A personal injury attorney can advise victims on the specific laws in their state and how they may affect their case.

Calculation Methods

Calculating pain and suffering damages is not an exact science. While medical bills and lost wages can be easily calculated, placing a value on the emotional and physical toll of a personal injury is more complex. Below are the two most common methods insurance companies use to calculate pain and suffering compensation.

Multiplier Method

The multiplier method is one of the most commonly used methods for calculating pain and suffering damages in a personal injury claim.

This approach involves multiplying the total economic damages (such as medical bills and loss of wages) by a specific number, usually between 1.5 and 5. The severity of the injury determines the multiplier, with more serious injuries receiving higher multipliers.

For example, if a victim’s medical bills total $40,000 and the injury is considered severe, the insurance company may use a multiplier of 3. This would result in $120,000 in damages in addition to the economic damages.

Per Diem Method

The per diem method assigns a specific dollar amount to each day the victim suffers from the injury. This daily rate is then multiplied by the number of days the victim has experienced pain and suffering, starting from the date of the accident until they reach maximum medical improvement.

For instance, if the per diem rate is $150 per day, and the victim has suffered for 200 days, the total damages would be $30,000.

Jury Discretion

In cases that go to trial, juries often have significant discretion in determining the amount of pain and suffering damages to award.

Unlike the formulaic multiplier or per diem methods, juries base their decisions on the evidence presented during the trial, including testimony from medical experts, the victim, and witnesses. This means the outcome can vary widely depending on the specifics of the case and the persuasiveness of the arguments made by both parties.

Negotiating Pain and Suffering Damages

Insurance companies are known for their aggressive settlement tactics in personal injury cases, and negotiating pain and suffering damages can be challenging for victims. Insurance companies often aim to minimize payouts, and they may use various strategies to downplay the severity of the injury or argue that the emotional distress is not as significant as claimed.

Settlement Negotiations

In most personal injury claim cases, damages are negotiated as part of a broader settlement agreement.

Insurance companies typically offer a lump sum that includes economic damages (such as medical bills and loss of wages) and non-economic damages (like pain and suffering). While settling out of court can be faster and less stressful, victims must be cautious not to accept a low offer, as insurance companies often try to minimize the amount paid.

A personal injury lawyer can help victims negotiate with the insurance company to ensure they receive fair compensation. Personal injury attorneys carefully assess the case, using evidence such as receipts for medical treatment costs, medical records, expert testimony, and personal accounts of the victim’s pain and suffering to build a strong case.

Additionally, an experienced attorney will advocate for a fair settlement offer that reflects the long-term impact of the injury on the victim’s life.

Trial

If a fair settlement cannot be reached through negotiations, the case may go to trial. Both sides present their arguments at trial, and the jury decides how much to award in damages. While going to trial can result in a higher award, it also comes with risks, including the potential for a lower verdict or no award at all.

A personal injury lawyer can guide victims through the trial process, presenting a compelling case to maximize their pain and suffering award.

The Role of a Personal Injury Attorney

Navigating the complexities of pain and suffering compensation can be overwhelming for injured individuals, especially when dealing with aggressive insurance companies. A skilled personal injury attorney is critical in advocating for victims to receive fair compensation for their injuries.

An attorney will gather evidence to demonstrate the extent of the victim’s pain and suffering, negotiate with insurance companies to secure a fair settlement, present a strong case in court if the case goes to trial, and advise on the specific laws in the victim’s jurisdiction that may impact their pain and suffering claim.

Secure Expert Legal Representation

If you’ve suffered an injury due to someone else’s negligence, you deserve compensation for your pain and suffering. Rosenfeld Injury Lawyers understand your challenges, and we are here to help, offering compassionate support and expertise at every stage of the process.

Our experienced legal team will negotiate with the insurance company on your behalf to ensure you receive the full amount you deserve for your pain and suffering, medical costs, loss of wages, and more, so that you have the best chance of making a full recovery.

Contact us today for a free consultation, and let our Chicago injury lawyers help you navigate the legal process to secure the compensation you are entitled to.

All content undergoes thorough legal review by experienced attorneys, including Jonathan Rosenfeld. With 25 years of experience in personal injury law and over 100 years of combined legal expertise within our team, we ensure that every article is legally accurate, compliant, and reflects current legal standards.