If you decide to pursue a personal injury claim in court against the other driver, any compensation you receive will take into account the personal injury discount rate (PIDR), also known as the Ogden rate.
The PIDR is shown as a percentage and is designed to reflect inflation, interest, and the cost of living. It’s based on the idea that the compensation you receive will be invested, and any interest you earn will go towards your long-term living expenses.
Working out the PIDR is complex, but essentially, the higher the percentage, the lower the compensation amount. This is because in theory, a high PIDR means potentially higher returns if your compensation is invested.
If the discount rate is low, you can expect more compensation because returns through investment are likely to be lower.
If you’re interested in finding out more, you can take a look at our in-depth guide to the personal injury discount rate.