Whether you have been the victim of a crime at one of Atlanta’s numerous apartment complexes due to negligent security or injured in an accident on the Perimeter on I-285, you may be entitled to pain and suffering damages. Even though Georgia does not have a “cap” on pain-and-suffering damages, new tort reform legislation has granted insurers powerful new tools to reduce payouts.
If you have been injured due to someone else’s negligence, you must understand how pain and suffering damages are calculated and how insurance companies work to minimize payouts.
What Is Pain and Suffering in a Personal Injury Case?
In Georgia, pain and suffering damages fall under the umbrella of non-economic damages. Unlike economic damages that have a specific monetary value, non-economic damages compensate for non-financial losses based on the facts of the case.
Georgia recognizes physical and mental pain and suffering as compensable damages in personal injury claims. Several issues considered when determining pain and suffering damages include:
- Pain and suffering: Compensation for the actual physical pain you suffered from your injuries, surgeries, chronic conditions, and rehabilitation
- Mental and emotional suffering: Issues that may affect you after the accident, such as depression, anxiety, PTSD, fear, and loss of enjoyment of life
The Multiplier Method and Per Diem Approach Explained
Two of the most common approaches insurance companies use to determine pain-and-suffering damages are the multiplier and per diem methods.
Multiplier Method
The multiplier method multiplies the amount of your economic damages, such as medical bills and lost wages, by a factor, typically 1.5 to 5. For example, suppose you have $50,000 in medical bills, multiplied by a 3x multiplier, you would be awarded $150,000 in pain and suffering.
Factors that determine the multiplier include:
- The severity of your injuries: Herniated discs and broken bones typically have a higher multiplier than soft tissue injuries
- Duration of recovery time: Months or years of treatment
- Permanence of injuries: Whether you have temporary injuries vs. permanent injuries or scarring
The multiplier method also accounts for the need for future treatment, which often includes surgery, physical therapy, or medication.
Typical Multiplier Ranges:
Some examples of typical multiplier ranges include:
- 1.5-2: Minor soft tissue injuries where full recovery is expected
- 2-3: Moderate injuries that require several months of treatment
- 3-4: Serious injuries that require a long recovery time and have some permanent effects
- 4-5+: Catastrophic injuries: Traumatic brain or spinal cord injuries and amputations that lead to permanent disability
Per Diem Method
Under the per diem method, a daily dollar amount is assigned for each day you have endured pain and suffering. The daily rate is usually based on your daily earnings. For example, suppose you make $200 a day, and your recovery took a year to complete. Using the formula, $200 per day for 365 days of recovery equals $73,000 in pain and suffering.
The per diem method is typically used for injuries with a definite recovery period. Insurance companies shy away from this method in cases involving permanent injuries where the end date equals an accident victim’s life expectancy.
Georgia juries are often receptive to the per diem approach because it puts a clear, concrete value on pain-and-suffering damages.
How Insurance Companies Actually Calculate Pain and Suffering
Many large insurance companies use proprietary computer programs, such as Colossus, to determine initial pain-and-suffering damages. These highly sophisticated programs use several types of data, such as injury codes, treatment records, and demographic information, to determine a “recommended” settlement range.
Even so, the software is designed to benefit the insurer by minimizing payouts. The use of these computer programs fails to account for the full human impact of the injuries you have suffered.
Insurance adjusters use these software programs as an initial starting point and then modify them based on several other factors. These factors assess whether the client has legal representation, jurisdiction, and the litigation risk. Insurance companies recognize that claimants without legal representation often accept lower settlement offers. Hiring an attorney shows you are prepared to take your case to court.
Factors That Increase or Decrease Your Pain and Suffering Value
Aside from the formulas and computer methods insurers use to calculate compensation, other factors can increase or decrease pain-and-suffering damages.
If the other driver was clearly at fault for the accident, their insurance provider is usually more likely to offer fair compensation. Another critical factor is whether you had consistent medical care, including regular doctor visits and physical therapy.
Gaps in medical treatment are the number one factor insurers use to minimize pain-and-suffering damages. The multiplier is also reduced if you have minimal medical expenses. Insurers also like to allege that your pain can be attributed to a pre-existing condition and not the accident.
Other relevant factors include:
- Severe or permanent injuries such as chronic pain or disability.
- The emotional impact of the pain on your life is often reflected in personal journal entries, therapy notes, and counseling records.
- Social media activity that depicts you engaging in physical activities that undermine your statements regarding the pain you have suffered.
- Evidence of how the injury has affected your life, including your job, relationships, daily activities, and hobbies.
- Shared fault: Georgia’s comparative negligence laws (O.C.G.A. § 51-12-33) reduce pain and suffering by your percentage of fault.
Why You Should Not Trust an Online Pain and Suffering Calculator
Online pain-and-suffering calculators use generic formulas that automatically favor the insurance company and do not account for Georgia law. They also do not account for the tendencies of Atlanta juries or the specific circumstances involved in your case.
Generic formulas also fail to consider the strength of the evidence, the at-fault driver’s policy coverage limits, the strength of your attorney’s negotiation skills, and the potential for punitive damages. In some cases, insurers may try to undervalue your claim by applying a low default multiplier meant to reduce payouts.
A qualified Georgia personal injury attorney can provide a much more accurate case evaluation based on local experience. To learn more about what your case is actually worth, contact Durham Law Group at 404-845-3434 or 813-333-6250 to schedule a consultation.
