Although driving has become an integral part of our everyday lives, it comes with inherent risks. We often neglect to acknowledge how risky the task is because it has become such a common practice. However, even when you take every precaution to mitigate the risk of being involved in an accident, accidents can still occur due to another driver’s negligence. When this is the case, you may incur both physical and emotional injuries that can last a lifetime. You may be wondering how insurance companies calculate pain and suffering. While the calculation can vary depending on the circumstances of the accident, insurance companies will look at various factors to determine a fair and adequate award. Please continue reading to learn what damages may be available in a personal injury lawsuit and how a trusted Birmingham Car Accident Lawyer can help you navigate your legal options today. 

What is Pain and Suffering?

Firstly, it’s crucial to understand the difference between pain and suffering in a personal injury case, as they are each compensated differently. “Pain” refers to the physical hurt that a victim experiences after an accident. “Suffering,” on the other hand, refers to the emotional distress or mental anguish you experience after an accident. It’s important to note that you can suffer without experiencing any physical pain. If you pursue a personal injury claim, you must track your pain and suffering to ensure you’re fairly compensated for both damages.

How is Pain and Suffering Calculated in a Car Accident Case?

When you file a personal injury lawsuit in Alabama, you can claim economic and non-economic damages. Economic damages represent your verifiable losses. Non-economic damages are subjective losses. Pain and suffering are non-economic damage, which means they’re not based on actual financial losses. Instead, it’s based on how the injury has affected the victim’s life. There are two methods that insurance companies use to calculate pain and suffering:

  • The Per Diem Method: This approach calculates pain and suffering by assigning a specific “amount per day” rate based on the severity of the injuries. Then, that number is multiplied by how many days the victim suffered from pain and suffering.
  • Multiplier Method: This approach calculates pain and suffering by totaling the economic damages and then multiplying it by a number between 1 and 5. This number represents the severity of your injuries.

Since every injury is unique, the amount of monetary compensation you’ll be awarded will vary depending on the specific circumstances of your case. Insurance companies will consider various factors when determining the amount of money awarded for pain and suffering and review multiple types of evidence. This includes medical records, bills, pay stubs, witness testimony, photographs, etc. Ultimately, insurance companies will consider the severity of your injuries and how long it will take you to reach a complete medical recovery.

If you’ve been seriously injured in a car accident, please don’t hesitate to contact a determined lawyer from Alabama Personal Injury Lawyers, LLC, who can help you fight for the just compensation you deserve and need to get your life back on track.