What is the formula used by insurance companies for determining a settlement of pain and suffering?

Normally, the insurance companies use four factors for determining the settlement of pain and suffering. The first one is the property damage. The second is the bodily injury caused in the accident. If the physical damage is permanent, then the bodily injury is multiplied by 2 to 5 times as the third factor. The fourth factor is lost wages for the injured person or persons. Usually, the insurance companies would offer an initial amount of $1,000 irrespective of the actual losses as pain and suffering compensation. Depending on the severity of the injury, further settlement amounts would be determined. It would be prudent to claim 3 times the amount when the insurance claim is filed, because the insurance companies would tend to pay as less as possible.