The Two Best Ways to Know the Worth of Your Emotional Losses

As if the physical injuries and property damage weren’t enough, car accidents can also take an emotional toll on those involved.

From anxiety and fear to grief and anger, the aftermath of a car accident can leave victims struggling with a range of emotions. And while it may seem difficult to put a price tag on these intangible losses, they are just as important as any other damages when calculating a car accident settlement.

So, how do you account for your emotional losses when calculating a car accident settlement? 

In this article, we will discuss two effective methods that can help you determine the true value of your emotional damages in a car accident claim.

Methods for Calculating Emotional Losses

Method 1: Use a Multiplier Approach

One common method for calculating emotional damages in car accident settlements is the “multiplier method.”

This approach involves assigning a numerical value (or multiplier) to the total amount of economic damages, such as medical bills and lost wages. The multiplier can range from 1.5 to 5, with a higher number typically being used for more severe cases.

For example, if your economic damages total $50,000 and you are assigned a multiplier of 2 for your emotional distress, your emotional losses would be calculated at $100,000 ($50,000 x 2). However, it’s important to note that this method may not always accurately reflect the extent of your emotional damages.

The multiplier method is often criticized for oversimplifying the complex nature of emotional distress and not taking into account individual circumstances. Factors such as pre-existing mental health conditions or a traumatic history can greatly impact one’s emotional response to a car accident. Therefore, while this method may provide a rough estimate, it should not be solely relied upon when determining the worth of your emotional losses.

Method 2: The Per Diem Method

Another approach to calculating emotional damages in a car accident settlement is the “per diem method.” This method involves assigning a daily rate (per diem) for the length of time you experienced emotional distress due to the accident. The per diem rate can vary depending on the severity and duration of your emotional distress, as well as any ongoing therapy or treatment.

For example, if you experienced emotional distress for 6 months following a car accident and were assigned a per diem rate of $100, then your emotional damages would be calculated at $18,000 ($100 x 180 days). This method takes into account the individual’s unique circumstances and can provide a more accurate representation of one’s emotional losses.

However, like the multiplier method, the per diem approach also has its limitations. It may be difficult to determine an exact daily rate for emotional distress, and some insurance companies may try to argue that the length of time or per diem rate is inflated, leading to a lower settlement offer.

It’s important to consult with a professional, such as an experienced personal injury attorney, who can help you accurately assess and negotiate the worth of your emotional damages in a car accident settlement.

Additional Factors to Consider

Aside from these two methods, other factors may impact the worth of your emotional losses in a car accident settlement. These include:

• Severity and duration of the emotional distress: The more severe and long-lasting the emotional distress, the higher the potential compensation.
• Impact on daily life: Emotional distress can greatly impact one’s ability to work, socialize, and engage in everyday activities. This should be taken into account when determining the value of your emotional damages.
• Expert testimony: In some cases, it may be beneficial to have a mental health professional provide expert testimony on the extent of your emotional distress and its impact on your life.
• Jurisdiction: Different states have different laws and caps on emotional damages in a car accident settlement. It’s important to consult a personal injury attorney in your jurisdiction for guidance on the potential compensation for your emotional losses.

Conclusion

While calculating the worth of your emotional losses in a car accident settlement may seem daunting, it is an important aspect that should not be overlooked. Whether using the multiplier or per diem method or considering other factors, it’s crucial to ensure that you are adequately compensated for all damages suffered as a result of the accident.

Consulting a trusted personal injury attorney can help you navigate this process and fight for the compensation you deserve.