How Much Do Insurance Companies Pay for Pain and Suffering?

If someone caused a car accident that severely injured you or a loved one, you’re dealing with more than just the immediate costs of medical treatment and property damage. The constant pain of your injuries coupled with the emotional distress resulting from the crash has significantly decreased your quality of life. You can’t enjoy doing the things you love as you did before the wreck, and you may be experiencing depression, anxiety, or even ongoing psychological trauma from reliving the accident.

You deserve compensation for these damages, and an attorney can help you obtain compensation for pain and suffering through a personal injury claim. However, you’re probably wondering, "How much do insurance companies pay for pain and suffering?" 

This is a common question for accident victims seeking fair compensation for their injuries and the impact on their lives. Pain and suffering compensation can vary widely depending on the specifics of your case. You should understand these factors to help you manage your expectations for how much compensation you could receive.

Read on to learn about the factors that can affect pain and suffering damages, how courts and insurance companies calculate them, and what you can do to safeguard your interests and get the best outcome possible. For specific advice and guidance about your claim, contact an experienced car accident lawyer near you for a free consultation.

What Constitutes Pain and Suffering?

In legal terms, pain and suffering damages encompass both the physical and emotional toll of an injury:

Physical Pain

Physical pain refers to the actual bodily discomfort and hurt caused by your injuries. This can include:

• Acute pain immediately following the accident


• Chronic pain that persists long after the initial injury


• Pain associated with medical treatments and procedures


• Ongoing discomfort that affects your daily activities

For example, if you suffered a broken leg in your car accident, you might experience severe pain during the initial injury, discomfort during the healing process, and potentially chronic pain that lingers even after the bone heals.

Emotional Distress

Emotional distress covers the psychological impact of the accident and your injuries. This can include:

• Anxiety and depression related to the accident or your injuries


• Post-traumatic stress disorder (PTSD)


• Fear of driving or riding in a car


• Sleep disturbances or nightmares


• Mood swings or irritability


• Feelings of humiliation or embarrassment due to visible injuries or disabilities

For instance, you might develop anxiety about driving or experience flashbacks of the accident. These can affect your ability to commute to work or engage in activities you once enjoyed.

Loss of Enjoyment of Life

This aspect of pain and suffering relates to how your injuries have diminished your quality of life. It can include:

• Inability to participate in hobbies or sports you once enjoyed


• Reduced capacity to engage in social activities


• Strain on personal relationships


• Loss of career opportunities or the ability to advance in your chosen field


• Inability to perform daily tasks without assistance

For example, if you were an avid tennis player before your accident but can no longer play due to your injuries, this would be considered a loss of enjoyment of life.

Factors Affecting Pain and Suffering Compensation

The amount of compensation you may receive for pain and suffering isn't arbitrary. Insurance companies and courts consider several factors when determining an appropriate amount:

Severity of Injuries

The more severe your injuries, the higher the potential compensation. Severe injuries typically result in more intense pain, longer recovery times, and a greater impact on your life. For example, a spinal cord injury resulting in paralysis would likely warrant significantly more compensation than a minor fracture.

Duration of Recovery

The length of time it takes you to recover from your injuries plays a role in determining compensation. Longer recovery periods often mean extended pain and suffering, as well as a more significant disruption to your life.

Impact on Daily Life

How much do your injuries affect your ability to perform everyday tasks? If you require assistance with basic activities like bathing, dressing, or preparing meals, this increased dependence can factor into your compensation.

Permanence of Injuries

Injuries that result in permanent disability or chronic pain typically receive higher compensation than those from which you're expected to fully recover. This is because the pain and suffering will continue to affect you throughout your life.

Your Age and Overall Health

Your age and health status before the accident can influence compensation amounts. For example, a young, previously healthy person who suffers a debilitating injury might receive higher compensation due to the longer-term impact on their life compared to an older individual with pre-existing health conditions.

Multiplier Method

This is one of the most common approaches. Here's how it works:

1. The insurance company totals all your "special damages" (economic losses like medical bills and lost wages).


2. They then multiply this total by a number between 1.5 and 5, depending on the severity of your injuries.


3. The resulting figure is your pain and suffering compensation.

For example, if your medical bills and lost wages total $20,000, and the insurance company uses a multiplier of 3, your pain and suffering compensation would be $60,000.

The multiplier used can vary based on factors like:

• Severity of injuries


• Length of recovery time


• Whether you'll have any permanent effects


• Impact on your daily life

Insurance companies often try to use the lowest multiplier possible to minimize their payout. You need a skilled attorney to negotiate for a fair multiplier.

Per Diem Method

The per diem (Latin for "per day") method assigns a daily rate to your pain and suffering:

1. A daily rate is determined, often based on your daily earnings before the accident.


2. This rate is multiplied by the number of days you experienced pain and suffering.

For instance, if your daily rate is set at $200 and you experienced pain for 100 days, your pain and suffering compensation would be $20,000.

This method can be particularly effective for injuries with a clear recovery timeline. However, it can be more challenging to apply to long-term or permanent injuries.

Combination of Methods

Some insurance companies use a combination of these methods or their own proprietary formulas to calculate pain and suffering damages. They might start with one method and then adjust based on the specific circumstances of your case.

Regardless of the method used, these calculations are just starting points for negotiation. The final amount can be influenced by factors like the strength of your evidence, the skill of your attorney, and the specific details of your case.

Challenges in Obtaining Fair Compensation

While you deserve fair compensation for your pain and suffering, your attorney may encounter challenges in getting the financial recovery you need:

Insurance Company Tactics to Minimize Payouts

Insurance companies are businesses, and their goal is to pay out as little as possible. They may use various tactics to reduce your compensation:

• Downplaying your injuries: They might argue that your injuries aren't as severe as you claim.


• Disputing liability: The insurer might try to argue that you were partially at fault for the accident to reduce their payout.


• Delaying tactics: They might drag out the process, hoping you'll get frustrated and accept a lower offer.


• Surveillance: In some cases, insurance companies might conduct surveillance to try to catch you engaging in activities that contradict your injury claims.


• Pressuring for quick settlements: They might offer a quick, low settlement hoping you'll accept before fully understanding the extent of your injuries.

A seasoned lawyer understands these tactics and knows how to counter them effectively.

Importance of Proper Documentation

One of the biggest challenges in proving pain and suffering is its subjective nature. Unlike medical bills or lost wages, there's no invoice for pain. This is why you and your attorney must thoroughly document the severity of your injuries and the impact they’ve had on your life:

• Medical records: These provide objective evidence of your injuries and treatments.


• Pain journal: Keeping a daily record of your pain levels and how your injuries affect your life can be powerful evidence.


• Photographs: Visual evidence of your injuries and their progression can help illustrate your suffering.


• Witness statements: Statements from friends, family, or coworkers about how your injuries have affected you can support your claim.


• Expert testimony: Medical experts can provide professional opinions about your pain and prognosis.

Role of Experienced Legal Representation

Having a knowledgeable attorney can make a significant difference in overcoming these challenges:

• Understanding fair compensation: An experienced attorney knows what constitutes fair compensation for different types of injuries.


• Negotiation skills: They can effectively counter insurance company tactics and negotiate for a fair settlement.


• Building a strong case: They know how to gather and present evidence in the most compelling way.


• Handling paperwork and deadlines: They ensure all necessary documents are filed correctly and on time.


• Trial experience: If your case goes to court, an experienced attorney can represent you effectively at trial.

Tips for Maximizing Pain and Suffering Compensation

While the amount of compensation you receive will depend on many factors, there are steps you can take to strengthen your claim:

Keeping Detailed Records

Document everything related to your accident and injuries:

• Keep copies of all medical reports, test results, and treatment plans.


• Save receipts for all expenses related to your injury, including medical bills, medication costs, and travel expenses for medical appointments.


• Maintain a daily log of your pain levels and how your injuries affect your daily activities.


• Take regular photos of your visible injuries to show their progression over time.


• Keep track of missed workdays and any changes to your work duties due to your injuries.

Seeking Appropriate Medical Treatment

Following your doctor's orders helps ensure your health and it also strengthens your claim. Here’s what you must do:

• Attend all appointments: This shows you're taking your recovery seriously.


• Follow treatment plans: Adhering to prescribed treatments demonstrates you're doing everything possible to recover.


• Don't delay treatment: Promptly seeking medical care after an accident helps establish a clear link between the accident and your injuries.


• Be honest with your doctors: Accurately report your symptoms and how they affect your life.

Documenting Impact on Daily Life

Paint a clear picture of how your injuries have affected your everyday existence:

• List activities you can no longer do or that have become difficult.


• Describe changes in your relationships due to your injuries.


• Explain how your injuries have affected your sleep, mood, or overall quality of life.


• If applicable, discuss how your injuries have impacted your ability to care for your children or other dependents.

Working with a Skilled Personal Injury Attorney

An experienced attorney can significantly improve your chances of receiving fair compensation. They can help you understand the true value of your claim and protect you from insurance company defense tactics. They can also negotiate for a favorable settlement or take the insurance company to court and sue for the money you need.

Since most personal injury lawyers offer free consultations and work on a contingency fee basis, you have nothing to lose by contacting a car accident lawyer in your area to see how they can help.

Get Help from an Experienced Michigan Car Accident Attorney Now

To improve your chances of getting maximum compensation for pain and suffering, you need an experienced attorney representing you. At Goodman Acker P.C., our personal injury attorneys have more than 150 years of collective experience, and we’ve obtained millions of dollars in pain and suffering compensation for our clients. 

We’re fully committed to helping you document the adverse effects the accident and your injuries have had on your life and relationships. You can trust us to fight hard to maximize your financial recovery so you can realize as full of a physical and emotional recovery as possible.

Don’t delay in getting the legal help you need. You don’t want to miss important legal deadlines or risk losing valuable evidence. 

Contact Goodman Acker P.C. today for a free, confidential consultation. Our compassionate attorneys will listen to your story, evaluate your case, and provide honest advice about your legal options. Let us put our knowledge and resources to work for you, so you can get the compensation you need to move forward with your life.