Insurance companies, like any other business, are in the business of making money. Even though you pay your premium every month, when you get into an accident, their primary concern will not be compensating you.
Since putting a price on someone’s experience of pain and suffering or emotional distress is a very difficult thing to do, the multiplier method and the per diem methods are just an estimate. After all, how can you really put a price on someone’s suffering?
A blog post summarizing a 2010 Connecticut drunk driving case in which a plaintiff sued both the deceased drunk driver's estate and the host of a social event at which the decedent got intoxicated before driving away and getting into the accident.