The Cassidy Law Firm Blog

When you’ve been hurt in an accident in New Jersey, one of the first questions you might ask is how much your case is worth. While every situation is different, settlements are usually based on a combination of economic and non-economic damages. Understanding how these factors are considered can help you know what to expect when negotiating with an insurance company or taking a personal injury claim to trial.

What Types of Damages Are Included?

Settlements typically account for two categories of damages:

• Economic damages cover measurable financial losses. These include medical bills, rehabilitation costs, lost wages, property damage, and anticipated future expenses if your injury affects your ability to work.

• Non-economic damages compensate you for harder-to-measure impacts like pain, emotional distress, or loss of enjoyment of daily life.

In severe cases, punitive damages may also be awarded, although these are less common and are usually reserved for conduct that is especially reckless or intentional.

How Are Medical Expenses Factored In?

Medical bills are often the starting point for calculating a settlement. This includes not just hospital visits and surgeries, but also follow-up appointments, prescriptions, physical therapy, and assistive devices. Future medical care also plays a crucial role, particularly if your injury necessitates ongoing treatment or significantly limits your independence.

In Shrewsbury and other parts of Monmouth County, accident victims often find that the cost of care adds up quickly, making accurate calculation of future needs critical to reaching a fair settlement.

What Role Do Lost Wages Play?

If your injury keeps you out of work, you may be entitled to compensation for lost income. This calculation often involves more than simply adding up missed paychecks. If your injuries reduce your future earning capacity, those losses can also be included. For example, a construction worker in New Jersey with a permanent back injury may not be able to return to the same job, which means long-term income loss is factored in.

How Is Pain and Suffering Measured?

Pain and suffering damages don’t come with receipts, but they are an essential part of most settlements. Courts and insurers may use different approaches to estimate these damages:

• Multiplier method: Total medical expenses are multiplied by a factor (often between 1.5 and 5, depending on the severity of the injury).

• Per diem method: A daily rate is assigned to your pain and suffering, then multiplied by the number of days you are expected to live with the impact.

Do Insurance Companies Calculate Differently?

Yes. Insurance companies often use proprietary software to analyze cases. These programs consider medical codes, treatment duration, and other data to suggest a settlement range. However, software can’t capture the full human cost of an accident, which is why many initial offers tend to be lower than what a claim may truly be worth.

What Other Factors Influence Settlement Value?

Additional considerations in New Jersey include:

• Comparative negligence: If you are found partially at fault, your compensation may be reduced under state law.

• Insurance policy limits: Even if your damages are high, payouts may be capped by the at-fault party’s coverage.

• Trial risk: If a case goes to court in Monmouth County, both sides assess the risks and costs associated with trial.

Why Legal Guidance Matters

At The Cassidy Law Firm, we understand how insurers in New Jersey approach these cases and how to build strong claims that fully reflect the harm you’ve suffered. We focus on making sure clients in Shrewsbury, Monmouth County, and throughout the state are not pressured into accepting less than they deserve.

Talk to a New Jersey Personal Injury Attorney Today