Non-economic losses are damages that aren’t straightforward to calculate. Unlike medical bills or missed paychecks, there’s no direct price tag for the pain, suffering, or lifestyle disruptions you’re going through. And in a city like San Francisco, with its active lifestyle and many opportunities, this kind of loss can feel even greater for you, the victim.

Thankfully, California law allows people to seek compensation for them in a personal injury case. To do this fairly, courts and insurance companies have come up with two main ways of estimating these kinds of damages. These are methods that try to put a dollar value on things that aren’t easy to measure.

If you’re working with a San Francisco personal injury lawyer, they would be able to guide you through the nitty-gritty of each of these methods because honestly, you have no shot navigating them on your own.

Method One: The Multiplier Method

The first way of figuring out non-economic damages is called the multiplier method. This one is used on all your concrete expenses from the injury—things like hospital bills, physical therapy sessions, and any income you lost if you couldn’t work. 

These are what they call “economic damages” because they’re things you can count. Non-economic damages, like pain or the frustration of missing out on life, aren’t so easy to count.

They’ll take the total of those economic damages and multiply it by a certain number, usually between 1.5 and 5, to get the non-economic damages. That number, i.e., the multiplier, is chosen based on how severe your injury is and how much it’s affected your life.

If your injury is mild but inconvenient, the multiplier might be on the lower end, like a 1.5 or 2. But if you’re dealing with something utterly serious—something that’s really taken a toll on your daily routine and happiness—then the multiplier could go up to a 4 or 5.

But it’s not a perfect system at all, unfortunately. For someone living in San Francisco, where our quality of life is part of why we love it here, this multiplier might feel a little cold or by-the-numbers. 

After all, how can anyone really say what your personal pain and losses are worth with a simple math equation?

Pros:

1. Easy to calculate: Just multiply your medical costs by a number.
2. Quick way to get an estimate.
3. Based on how serious your injury is, so bigger injuries get higher payouts.
4. Works well when there’s a lot of physical or mental pain involved.
5. Uses your actual expenses as a starting point, so it feels grounded in real numbers.
6. Often used by insurance companies, so they’re familiar with it.

Cons:

1. Doesn’t consider specific daily struggles; it’s more “one-size-fits-all.”
2. Hard to decide what number to multiply by (1.5, 3, 5?).
3. Might feel too basic for more complex situations.
4. Could result in a lower amount if your expenses are low but the impact on your life is big.

Method Two: The Per Diem Method

The second way to figure out non-economic damages is called the per diem method, which just means per day in Latin. This one works a bit differently.

Instead of multiplying your actual costs, this approach gives you a set dollar amount for each day you’ve been facing the side effects that the accident left you with. 

Here’s a very literal example to help you understand better: After your injury, each day might be a struggle. With the per diem method, they’ll choose a daily rate, maybe $100, $200, or even more, and then they’ll multiply that by the number of days you’ve been affected.

So, let’s say your recovery took around six months or roughly 180 days, and they decide that each day of missed quality of life is worth $150. Multiply those together, and you’d get $27,000 for your non-economic damages.

Now, the major issue with the per diem method is finding a fair daily rate that actually reflects the reality of what you’re going through. If they lowball it, you’re going to feel like it’s nowhere near enough. And if they go too high, insurance companies might push back. 

Pros:

• Gives a daily value to your pain and suffering.
• Easy to relate to, since it’s like getting paid for each day you’re affected.
• Works well for injuries that impact your life for a long time.
• Focuses on how long you’ve been dealing with pain or stress.
• Helps cover smaller, daily inconveniences of an injury.
• Can feel more “personal” since it’s about your day-to-day experience.
• Good for injuries with a clear recovery timeline.

Cons:

• Hard to agree on a fair daily amount.
• May be too low if they pick a small daily rate.
• Not ideal for injuries with uncertain or long-term recovery times.