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The Hart Law Firm

Unraveling the Mystery of How Insurance Companies Decide Emotional Distress Compensation After a Car Crash

If you are injured in an automobile or taxicab crash, you can suffer from emotional trauma as well as physical injuries. If the crash was caused by the taxicab driver or another driver’s negligence, you may also be entitled to damages for the following:

  • Medical bills
  • Past wages
  • Future wages if his recovery will be lengthy or he is permanently disabled
  • Property damages
  • Emotional distress damages

While it can be relatively easy to figure how much a person lost in back wages or incurred in medical bills, it is harder to put a monetarily amount on the pain and suffering you’ve suffered (and may continue to endure) because of your injuries. How much is lost sleep, anxiety, or pain from an injury really worth?

Three Ways an Insurance Adjusters Calculate Pain and Suffering Damages

Insurance companies are required to calculate a monetary award for automobile crash victims’ pain and suffering on a regular basis. They could use one of the following methods to determine what to offer in settlement:

  • Multiplier method. One way to calculate a person’s emotional trauma compensation is to take the known figures—medical bills and lost wages—called “special damages” and multiply it by a number between one and five, also known as the multiplier. What number is used as the multiplier will be based on a number of factors, such as whether there were any aggravating considerations like drunk driving involved, the severity of the injuries, the length of the recovery time, and whether the person has completely recovered physically.
  • Per diem method. Another way to calculate these damages is to give the pain and suffering a daily amount and multiply this figure by the days the person suffered the injury. This amount is added to the special damages to arrive at the amount of compensation to offer in settlement.
  • Computer programs. Insurance adjusters could also use a computer program to arrive at a pain and suffering award. These programs take into account the injuries suffered and the medical treatment sought in determining the settlement amount.

If you or a family member has been injured in a taxicab or automobile crash caused by another driver, it is important to contact an experienced personal injury attorney who understands how insurance companies settle these claims and the amount of compensation you could be awarded at trial. Start an online chat to schedule a free no-obligation consultation to learn about your legal options and how we can help you.

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