Injured MVA Plaintiffs Injured Again with Increased Deductible – Inflation Hits Hard

Effective January 1, 2022, the monetary threshold and deductibles for determining the pain and suffering damages for a plaintiff injured in a motor vehicle accident increased significantly due to the high inflation rate felt across the country.

An indexation rate of 4.4% was applied. For 2022, the monetary threshold is $138,343.86, and the deductible is $41,503.50. This deductible is a considerable increase from the 2021 threshold of $132,513.28 and $39,754.31.

For the Family Law Act, claims of family members whose loved ones were injured in a motor vehicle accident, the monetary threshold is $69,171.36, and the deductible is $20,751.76.

What does this mean for the injured person? If a jury awarded the plaintiff $100,000.00 for their pain and suffering, the insurance company would only have to pay $58,496.50 (i.e., $100,000.00 – $41,503.50). That deductible does not go away until the jury awards at least $138,343.86.

And the worst part? The jury is never told about the deductible.