We've written a full article on how pain and suffering compensation is calculated. Please take advantage of the free resource.
In the article we make it clear that there is no one tried-and-true formula for answering the the question, "how is pain and suffering determined?" There are, however, a few different methods that are used to help determine a pain and suffering award. These methods are starting places, not be-all-end-all techniques. The two most common methods of calculating pain and suffering are the Per Diem method and the Multiplier method.
- When using the Per Diem method, an attorney will determine the daily financial loss their client has experienced due to the accident and total the number of days that they have suffered.
- The Multiplier method is more frequently used by pain and suffering lawyers so that their client’s settlement is not tied to their income. This method totals up all expenses incurred because of the accident, and multiplies the amount by a number typically between 1.5 and 5%, depending on the severity of the injury.
Insurance companies are not obligated to adhere to these methods of calculation, and neither are attorneys, but they do pay attention to how pain and suffering are documented and proven.