Per Diem Rates and Other Ways to Calculate Non-Economic Damages

The physical pain and emotional distress of a car accident can lead to significant non-economic damages. If this is true for you, it’s important to recognize that the way non-economic damages are assessed is not always simple. Non-economic losses differ fundamentally from economic damages that can be totaled up with the aid of a calculator.

If you have questions about the claim valuation process, a Boca Raton personal injury lawyer can give you an overview of what non-economic damages are and if they could be part of your claim. Should you be eligible for non-economic recovery, your attorney can share with you methods used to calculate them, such as per diem rates and multiplication factors.

Calculating Non-Economic Damages

Non-economic damages refer to intangible losses while economic damages cover quantifiable losses like medical bills, lost wages, and property damage. Because of their personal nature, non-economic damages require more subjective methods when assessing their monetary value.

Two common approaches include the per diem method and the multiplier approach.

• Per diem method. The per diem method assigns a daily rate to a victim’s distress. This rate can be based on the victim’s daily earnings or another reasonable amount that reflects the extent of their suffering. To calculate the duration, there will be an estimation of the number of days the victim endured pain and suffering, from the date of the injury to the expected recovery date. For example, if pain and suffering is assigned a value of $150 per day and the recovery period is 200 days, the non-economic damages would be calculated as $30,000, the result of $150×200.
• Multiplier method. In other situations, economic damages are totaled and that amount is multiplied by a factor, typically between 1.5 and 5, in order to estimate non-economic damages. The multiplier reflects the severity of the injury and its impact on the victim’s life. Minor injuries often use a lower multiplier while severe and permanent injuries use higher ones. So, if the economic damages total $50,000 and a multiplier of 3 is deemed appropriate, the calculation would be $50,000×3 for a total of $150,000.

The big difference in these calculations is that non-economic damages are inherently subjective, which often makes them harder to quantify. Each individual’s experience of pain, suffering, and emotional distress is unique, requiring a nuanced approach to valuation. This contrasts with economic damages, which can be calculated based on actual receipts, invoices, and income statements.

Assessing the Right Method for You

Navigating the complexities of calculating non-economic damages requires expertise and experience. This is not a calculation that should be made lightly or assumed to be correct if you are given a number from an insurance representative. A skilled Boca Raton personal injury lawyer can evaluate your case and determine the appropriate method for calculating your non-economic damages.

Can you secure monetary funds for both economic and non-economic losses? Share the details of your Delray Beach, Deerfield Beach, or Pompano Beach accident injury and recovery process with the attorneys at Leifer & Ramirez. Book a confidential consultation today, call 561-660-9421.