When someone is injured in an accident, the financial burden extends far beyond medical bills and lost wages. The emotional distress and physical pain can be just as damaging, yet harder to quantify.
At Harrell & Paulson in Kaufman, Texas, we help clients work through personal injury claims, including the often challenging task of proving pain and suffering. Understanding how insurance companies calculate these damages can make a significant difference in the outcome of a claim.
Pain and suffering are considered non-economic damages, meaning they don’t have a direct financial cost like medical expenses or lost wages. However, they play a crucial role in determining the full value of a personal injury claim.
The physical and emotional toll of an injury can affect every aspect of a person’s life—from their ability to work and care for their family to their overall well-being and sense of independence.
Many insurance companies attempt to minimize these damages or apply arbitrary calculations to determine what they believe is fair compensation. However, each case is unique, and the methods used to evaluate pain and suffering can significantly impact the final settlement.
This is why having a knowledgeable legal advocate on your side is essential. Our firm is committed to fighting for the full compensation our clients need, making sure their pain and suffering are accounted for in every claim.
What Is Pain and Suffering in a Personal Injury Case?
Pain and suffering go beyond the immediate medical costs associated with an accident. While economic damages—such as hospital bills, lost wages, and rehabilitation costs—are relatively straightforward to calculate, non-economic damages require a more subjective evaluation.
Pain and suffering may include:
Physical pain from injuries such as broken bones, burns, or nerve damage
Emotional distress, including anxiety, depression, and post-traumatic stress disorder (PTSD)
Loss of enjoyment of life, which occurs when injuries prevent participation in hobbies, sports, or other activities
Disfigurement and scarring, which can lead to emotional suffering and self-esteem issues
Loss of companionship, particularly when injuries affect relationships with family members or romantic partners
Since these damages are more subjective, insurance companies use various methods to place a monetary value on them.
Methods Insurance Companies Use to Calculate Pain and Suffering
Unlike medical expenses or lost income, pain and suffering damages don’t come with a clear price tag. Insurance companies rely on different strategies to estimate compensation.
The Multiplier Method
One of the most common techniques insurers use is the multiplier method. This approach starts with the total amount of economic damages and applies a multiplier based on the severity of the injury.
The calculation typically follows this formula:
Economic damages X multiplier = Total estimated damages
The multiplier usually ranges from 1.5 to 5, depending on several factors:
Severity of injuries: More serious injuries receive higher multipliers.
Length of recovery: Chronic conditions or long-term disabilities lead to higher values.
Impact on daily life: If an injury prevents normal work or activities, insurers may apply a higher multiplier.
For example, if a person incurs $50,000 in medical expenses and lost wages, and their injuries warrant a multiplier of 3, the pain and suffering portion would be valued at $150,000, bringing the total claim to $200,000.
The Per Diem Method
Another way insurance companies evaluate pain and suffering is through the per diem (daily rate) method. This approach assigns a specific dollar amount to each day the person suffers from injury-related pain.
The formula looks like this:
Daily rate X number of days of suffering = Total pain and suffering damages
Determining the daily rate can be subjective, but a common approach is using the injured person’s daily earnings. The idea is that dealing with pain is at least as burdensome as a day’s worth of work.
For instance, if a person earns $200 per day and experiences pain for 180 days, their pain and suffering damages would amount to $36,000.
Factors That Affect the Calculation of Pain and Suffering
Insurance companies don’t rely solely on formulas; they also assess other elements when determining pain and suffering compensation.
Key factors include:
Severity and permanence of injuries: Long-term or permanent conditions generally result in higher compensation.
Impact on daily life: If an injury affects mobility, work, or personal relationships, the value increases.
Medical treatment required: More extensive treatments (e.g., surgery or physical therapy) suggest a higher level of suffering.
Credibility of the claimant: Consistent medical records, documented pain levels, and statements from healthcare providers strengthen the claim.
Comparative negligence: If the injured party shares fault in the accident, the compensation may be reduced.
Given these factors, two people with similar injuries may receive very different settlements based on how their injuries affect their lives.
Challenges in Proving Pain and Suffering
Since pain and suffering aren’t easily measured, proving these damages requires strong supporting evidence. Insurance adjusters often scrutinize claims to minimize payouts, making it crucial to present compelling documentation.
Important types of evidence include:
Medical records: Notes from doctors, physical therapists, and psychologists can confirm ongoing pain.
Photographs: Before-and-after images of injuries can illustrate the severity of suffering.
Pain journals: Personal logs detailing daily pain levels, activities affected, and emotional struggles add credibility.
Witness statements: Testimony from family, friends, and co-workers can help demonstrate changes in behavior and lifestyle.
Professional opinions: Medical professionals or psychologists can provide professional assessments of the physical and emotional toll of injuries.
Without solid documentation, an insurance company may argue that pain and suffering damages are exaggerated or unwarranted.
Negotiating a Fair Settlement
Insurance companies rarely offer a fair pain and suffering settlement upfront. Their initial offer may undervalue non-economic damages, requiring negotiation.
Strategies to negotiate better compensation include:
Gathering comprehensive evidence: The stronger the proof, the harder it is for insurers to dispute the claim.
Understanding claim valuation methods: Knowing whether the insurer is using the multiplier or per diem method helps evaluate their offer.
Highlighting the impact of injuries: Explaining how the injury affects work, daily life, and emotional well-being can justify a higher amount.
Avoiding early settlements: Quick offers tend to be lower, so waiting for a full recovery can lead to better compensation.
Working with a lawyer: Insurance companies take claims more seriously when an attorney is involved.
When a Lawsuit Becomes Necessary
If an insurance company refuses to offer fair compensation, filing a personal injury lawsuit may be the next step. Taking a case to court puts the decision in the hands of a jury or judge, who may award a higher amount than an insurer would voluntarily pay.
A lawsuit may be necessary if:
The insurance company denies liability
The settlement offer is significantly lower than expected
The injured party suffers permanent disabilities or chronic pain
The insurer delays the claims process without valid reasons
Going to trial introduces risks, but it can also lead to more substantial compensation for pain and suffering.
Speak to a Personal Injury Lawyer Today
Calculating pain and suffering is never straightforward, and insurance companies often try to downplay these damages. At Harrell & Paulson, we fight for fair compensation for our clients in Kaufman, Forney, Terrell, and Rockwall, Texas.
If you’ve suffered a personal injury in an accident, contact our firm today to discuss your case and explore your legal options.
