How Do Insurance Companies Decide About Pain and Suffering in Car Accident Case

Feb 10, 2020 10:24 AM EST | Staff Reporter

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How Do Insurance Companies Decide About Pain and Suffering in Car Accident Case


(Photo : How Do Insurance Companies Decide About Pain and Suffering in Car Accident Case)

If you are thinking about how much your car accident case is worth, you must be aware that car insurance companies have their system to repay your damage, medical bills, and lost income. If you want to claim your damage, you must need evidence of your loss. You need to know your legal rights and what happens if you wait too long. 

An experienced lawyer can easily help you to construct an object testimony to know what you can do and can't do before the accident. This type of agreement has benefits to claim your right in front of the jury. All you need is the best car accident lawyer for rightfully handle your case.

Define Pain and Suffering Damages

When you talk about the damage that is involved with various injury cases. You can get to know about general damage and also special damage.

General damages are not specifically financially supported. These types of damages are physical pain, depression, anxiety, fear, insomnia, loss of consortium, and emotional trauma. There is no real or specific money for a general type of damage. There are no such rules for this. But there are many serious ways to get money for your serious medical bills. This money can help you in managing pain and suffering.

Special damages are such damage for which one can easily claim medical bills and vehicle damage. Insurance could be for anything of our body. Examples of special damages are damages that cost of medical bills, amount of forfeited money, costs of home care, and domestic services to repair or replace items. As you know, when you buy a car, there is car damage insurance. Then there's the accident type of insurance. The insurance is determined by how many days you were in medical care after the accident. 

Pain and Suffering Calculation by Insurance

An insurance company should calculate pain and suffer mutually. It is usually done by two methods. Whenever one's damage is found in any amount, the attorneys shall multiply it by a certain number like 1 & 5. That means they calculate it depending on the severity of the accident and the injury. These companies get the diagnosis by a physician. If the damage is more extreme, then they examine with the help of a chiropractor. 

The body injury insurance companies would deny the claim if you didn't go to the doctor after having any sort of pain. They are most likely to avoid lesser medical treatment claims rather than the bigger medical treatments. They accept easily if the injury recovery time is longer than a short recovery time period. This also applies to car accident medical treatment insurance.

Another method of insurance is 'Per diem'. It means that this method uses the daily damages taken. But this method may not work in a car accident case. Because in a car accident insurance, damage per day is not possible.

Increasing the amount awarded for pain and suffering

You need to prove your damage to get a fair amount. You need to ensure you have proper evidence of medical bills, witness statements, and expert testimony for injuries and pain that are caused. Witnesses can help you with your incident, and they can testify how this accident impacted you. There are some fraud people who team up with the witnesses to have a fake statement. These are heavily prohibited in the court.  

The Multiplier Method

If you're a worker and sadly get involved in a car accident, you'll not be able to work for about a couple of weeks. If so, then how are you going to cover up those lost wages? Well, the multiplier method can also help you with lost wages apart from medical bills. 

The multiplier method will go like this; the total amount of medical bills and lost wages will be multiplied by 3 (3 is the common multiplier used by many insurance companies). So for example, if your medical fees are 4500$ and lost wages are 1500$, then the total amount of these two combined will be 6000$. This 6000$ will be multiplied by 3. So 18000$ is your total insurance for your car accident.

Now you might wonder how I will determine this amount. The more dangerous your car accident was, the more money will be added.

The Daily Rate Method

The daily rate method is based on a daily rate. Depending on the days you were in medical treatment for the car accident, the injury claim will be increased. So each day, an amount of money must be added to the total insurance. As I mentioned earlier, it's also known as the 'Per diem' calculation.

To get the idea of this method of insurance, we present you with this simple example. Suppose the total medical bills were 5000$, and lost wages were 1000$. The physician who was checking you prescribed daily pain medication. If the daily value was 200$ per day, then in 3 months (90 days), it'll reach 18000$.

So, if your daily income was 200$/day, this daily rate method will help you cover up the lost wages more precisely because whether you were injured or not, you are still earning 200$ per day.

Getting A Final Value

The best way to value the claim of your insurance from an insurance company is either the multiplier or the daily rate. And if you apply all of these factors combined, then you'll be able to value your claim. If others were also involved with the car accident, you would be able to get enough money to treat all victims. But everybody should have this kind of insurance. We don't know for sure when the accident may occur. 

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