How Pain and Suffering Damages Are Calculated

What are pain and suffering damages?

Pain and suffering damages — also called non-economic damages — compensate injury victims for the physical pain, emotional distress, and reduced quality of life caused by their injuries. Unlike medical bills and lost wages, pain and suffering cannot be precisely quantified, which makes it the most negotiated component of any personal injury settlement.

The multiplier method

The most common approach used by insurance adjusters is the multiplier method. Your total medical expenses are multiplied by a number — typically between 1.5 and 5 for moderate injuries, and up to 10 or higher for catastrophic injuries. The multiplier reflects the severity, duration, and permanence of your suffering.

The per diem method

An alternative approach assigns a daily dollar value to your suffering — often your daily wage — and multiplies it by the number of days you have suffered and are expected to continue suffering. This method can produce higher results for long-duration injuries.

How insurers actually value pain and suffering

Large insurers use proprietary software that analyzes thousands of data points to generate a settlement range. An experienced attorney knows how to document and present your claim in ways that push toward higher outputs — and knows when to reject the software's output and demand a higher number.