Understanding How Personal Injury Damages Are Calculated

Understanding How Personal Injury Damages Are Calculated
Calendar icon April 30, 2024 | Reading Time: 5 min

When you’re the victim of an accident that leads to personal injury, understanding how damages are calculated can seem like an impossible task amidst the stress and confusion of the aftermath. Many people find themselves asking a multitude of questions: What am I entitled to? How will my medical bills be paid? What about the time I’ve had to take off work? All of these concerns are valid and addressing them is important for ensuring you get the compensation you deserve. 

How Is Personal Injury Calculated?

Compensation for personal injury isn’t a random number plucked out of the air. Instead, it’s determined by carefully considering a variety of factors, including the severity of your injuries, the impact on your quality of life, and the economic losses you’ve endured. Generally, personal injury damages are divided into two main categories: compensatory and punitive.

Compensatory Damages

Compensatory damages aim to restore the injured party to the financial position they were in before the accident. These damages are further divided into two subcategories: economic and non-economic.

Economic Damages

Economic damages are calculable costs directly related to the injury. These can include:  

  • Past and future medical expenses
  • Lost wages
  • Loss of earning capacity
  • Any out-of-pocket expenses that have arisen as a result of the injury. 

To accurately calculate these damages, an array of documentation is necessary. Medical bills, pay stubs, tax returns, and receipts are essential for quantifying these losses. Additionally, expert testimony may be required to project future medical costs and earnings losses.

Non-Economic Damages

Non-economic damages compensate for intangible losses that don’t have a definitive monetary value but still significantly impact the victim’s life. This can include: 

  • Pain and suffering
  • Emotional distress
  • Loss of enjoyment of life
  • Disfigurement
  • Loss of consortium. 

Unlike economic damages, there’s no universal formula for calculating these. Instead, jury awards for non-economic damages are based on the severity of the injury, its long-term effects, and the subjective impact on the individual’s life.

Punitive Damages

Punitive damages are a different type of compensation altogether. Rather than being designed to make the victim whole, they are intended to punish the wrongdoer and discourage similar conduct in the future. These are awarded only in cases where the defendant’s actions were particularly shocking or reckless. Punitive damages are not tied to the injury’s financial impact and are relatively rare in personal injury cases.

Factors That Affect How Damages Are Compensated

There are several factors that can significantly influence how damages in a personal injury case are calculated:

  • The degree of fault: New York follows a comparative negligence rule, which means that if you’re found partially responsible for the accident, your compensation will be reduced by the percentage you’re found to be at fault.
  • The credibility of the evidence: The stronger and more credible  your documentation and testimony are, the better your chances of receiving a fair damages award. It’s important to take pictures and video at the accident scene, get a police report, and follow up with medical visits, as these are all pieces of evidence that can strengthen your claims.
  • The policy limits: Insurance policy limits also play a role, as they cap the maximum amount that can be paid out. This is why SUM coverage is important. If the other party’s insurance coverage is exceeded, you may need to turn to your own insurance to cover the remainder of your damages.
  • The life expectancy of the claimant: Particularly in cases involving permanent injuries, life expectancy can impact future damage calculations.
  • Statutory caps: Some states impose limits on certain types of damages, particularly non-economic damages like pain and suffering.

Calculating Personal Injury Damages: An Example

Imagine you’ve suffered a back injury in a car accident caused by another driver. Here’s how damages might be calculated:

  • Medical expenses (ambulance, surgery, hospital stay, medication): $50,000
  • Rehabilitation costs (specialist visits, medical equipment): $15,000
  • Lost wages (six months of recovery time at $4,000 per month): $24,000
  • Pain and suffering: Given the potential chronic nature of back injuries, let’s assume a jury awards $100,000
  • Punitive damages: These are not applicable unless the other driver’s conduct was egregious.

In this scenario, the compensatory damages would total $189,000, comprised of $89,000 economic and $100,000 non-economic damages. Keep in mind, your own no-fault insurance would cover up to $50,000 of the expenses directly related to your medical bills and lost wages. 

Why Legal Representation Matters

The calculation of personal injury damages can be complex, especially in cases where multiple parties may be liable. Navigating these claims without the assistance of seasoned legal representation can be intimidating. Each case’s unique facts make partnering with an experienced personal injury attorney essential for maximizing the compensation you can recover.

Your personal injury lawyer will have an in-depth understanding of these nuances, including how to:

  • Gather comprehensive evidence to substantiate all aspects of the claim
  • Engage medical and economic experts to compute long-term costs and losses
  • Argue effectively for a fair assessment of pain and suffering
  • Negotiate with insurance companies who aim to minimize payouts
  • Prepare for trial, if necessary, to ensure just compensation

Furthermore, because most personal injury lawyers work on a contingency fee basis, they only get paid if you win your case, aligning their interests with your own.

Contact Cellino Law

Calculating the full extent of your losses and seeking fair compensation after a personal injury can be an overwhelming challenge, particularly when you should be focusing on your recovery. Allow the knowledgeable and compassionate team at Cellino Law to help take the weight off your shoulders. Our team of legal professionals have decades of experience working with injury victims to secure the damages our clients are rightfully owed. 

If you have suffered a personal injury and need expert help in calculating your damages, representation in negotiations, or advocacy in court, we are here for you. Contact us for a free consultation at 888-888-8888, and take the first step towards securing your future.

Zoom Screenshot_16.png

Content checked by the personal injury attorney Ross Cellino. As a family man and a trial attorney, I pride myself on winning cases and serving the community. With over 35 years of experience, I understand the function of a jury, how juries arrive at conclusions, and the role that the jury plays in administering justice. I know how to win cases. You can find us in Manhattan, Buffalo, Melville, Rochester, Brooklyn, The Bronx, Queens and other locations throughout New York.

SHARE THIS ARTICLE

INJURED?
WE CAN HELP

CALL US NOW

Free Case Review

BLOGS ARCHIVE

FREE CASE REVIEW

Testimonials

  • We'd like to thank you for all the assistance and time you spent on our case. Your professionalism and honesty will always be appreciated. The staff was always courteous and we were always impressed with your accountability. Your passion and dedication will never be forgotten, nor will you.

    Sarah

  • Choosing the right attorney to represent you after an accident can make all the difference. This is no cliche. I recently experienced these words to live by first hand. After a tractor trailer rear ended me at high speed in 2017 I retained Allan Silverstein to handle my case. I quickly realized that bringing a lawsuit rapidly snowballs into a mountain of details that can make or break your results. Documents, case histories, doctor visits, bills, and lots of phone calls all need to be accurately kept track of if a successful outcome it to be attained. To complicate matters I reside in New York and the incident took place in New Jersey. Luckily, Allan was licensed in multiple states. I was fortunate to find Allan to handle this matter from the New York area. Armed with an accurate account of the facts Allan went to work on the difficult job of negotiating with the defending insurance company as well as my no fault carrier in order to obtain the best possible outcome for my set of circumstances. In a lawsuit communication is key and and events can be of a timely nature. Allan never failed to return my calls - usually the same day! He fought skillfully and respectfully to get me the best possible settlement. He is easy to deal with and a likeable down to earth guy. He always listened with compassion and respect to my issues. He guided me with objective understanding as well as a realistic analysis of the merits of my case. When we finally settled Allan got me a fair agreement beyond my expectations and negotiated with my doctors to make sure all my bills were paid. It was a great experience having Allan represent me. Quality work in any aspect of life is hard to find. Quality is what I got with Allan Silverstein. I highly recommend him if you find yourself in need of a personal injury attorney.

    Theodore

  • Joe and I just wanted to send you this note thanking you for the professional way you handled our lawsuit. Your kindness was extremely appreciated in a very difficult time. When we found out the people that caused the accident had no insurance, we thought our chances of receiving any settlement was nonexistent. Once we met with you and released you were able to help us our minds were put at ease. Your aggressive manner of handling the case exceeded our expectations. Please feel free to use us as a reference. Thank you so much and best wishes,

    Danielle and Joe

  • Thank you for your efforts on my behalf. I am very pleased (and surprised) at the amount of the settlement. We will use the funds to help pay down the debt on the truck we had to purchase after ours was totaled. Thank you again.

    Linda

  • This is to express our gratitude to you and your team in helping us and Stephanie navigate through the legal process following her car accident. We are very satisfied with the outcome and grateful for your hard work and attention to details. We fell confident that with this compensation, Stephanie will be able to move forward with her studies and her life with the ability to care for some of her health needs resulting from the injuries sustained following her car accident. Thank you very much and may God continue to bless your efforts.

    Jose & Rose

  • Mark Kochanowicz is from far the best attorney you can have. Mark treats you like a friend more than a client. He truly cares and go the extra mile for you and your case, contacts you to update you in regards to your case and keep you informed at all times. Mark represented me twice and settled my cases for way more than I expected. I highly recommend Mark Kochanowicz because he is just the best on what he does!!! Thank you Mark!!!!

    Maria