There are two main methods courts and insurance companies use to calculate financial compensation for pain and suffering, both of which are used in California. The first is the “per diem” method. With this method, a daily rate is calculated based on the severity of the victim’s injuries, and then this rate is multiplied by the number of days he or she is expected to experience pain and suffering. The second is the “multiplier” method. With this method, the victim’s financial losses (i.e. medical bills and lost income) are multiplied by a number between 1.5 and 5—with higher numbers being used in cases involving more-severe injuries.