Calculating How Much You Are Owed After a Car Accident in New Jersey

If you have been involved in a New Jersey car accident, you may be wondering how you are going to pay all of your mounting medical bills. You may have to take time off of work to recover from your injuries, making it more challenging to meet your financial needs. In this article, we will discuss car accident settlement calculations and how they are made.

How Do I Know How Much I am Owed After a Car Accident?

If you wonder how much your car accident claim is worth, the best decision you can make is to discuss your case with a car accident lawyer. Attorney David A. DiBrigida has successfully settled many New Jersey car accident claims. He offers potential clients a free initial consultation. 

At your free initial consultation, he will carefully review your case and provide you with an estimated range of the value of your case. After an initial consultation, he will thoroughly investigate your claim and use experts when necessary to determine a more accurate estimate of the damages to which you are entitled.

What Factors Go Into a Compensation Estimate?

Calculating the total value of your injury claim is more complex than calculating the value of an object, such as an automobile or car part. There is no fair market value price for the loss of use of a body part or a catastrophic injury. Additionally, every personal injury accident is unique, and the costs associated with the injury will vary from person to person. Suppose a 20-year-old college athlete with a scholarship to play football becomes injured and loses the use of his legs. 

The college athlete would suffer a far greater economic, emotional, and psychological pain over time than a retired older woman who loses the last of her legs. His claim would be worth significantly more. The college athlete’s earning capacity would be diminished considerably throughout his life, and he would face more long-term consequences. 

After attorney David A. DiBrigida reviews all the necessary information in your unit case, he will use the formula to evaluate your claim’s value. There are a few different methods to try to estimate the value of a personal injury case. 

How Do Insurance Companies Calculate What a Case is Worth?

When insurance companies evaluate a personal injury claim, they rarely use whole numbers as multipliers. Most of them use complex computer algorithms to try to determine the multiplier. The equation that insurance companies use to calculate a claimant’s pain and suffering is often called the damage formula. The damage formula typically involves the following steps:

  • Add up the total amount of medical expenses related to the injury

  • Multiply the special damages by a number between 1.5 and 5, but as high as 10 in extraordinary cases

  • Add the calculated number to the total medical special damages

  • Add lost income or wages

  • Add property damage

The Multiplier Method

The most common approach to calculating pain and suffering in a personal injury lawsuit is the multiplier method. In the multiplier method, you will add up all of these special damages and multiply the resulting number by a certain number. Special damages are any types of economic losses that can be easily quantified, such as lost wages, medical bills, and property damage. Typically this number is between 1.5 and 5. 3 is the most commonly used multiplier. 

To determine the multiplier, which is the number between 1.5 and 5 that will be used to multiply the total economic damages, it depends on multiple factors. Suppose a victim experiences catastrophic injuries after an accident, such as a spinal cord injury or traumatic brain injury. These victims will need lifetime medical care, experienced significant lost wages because they cannot work, and have a reduced quality of life. In these cases, the multiplier used to calculate pain and suffering is typically 4 or 5.

On the other hand, if you have experienced a serious injury such as a broken bone laceration, but you are likely to recover, the situation is completely different. Your multiplier will probably be closer to the average, which is 3. Additionally, the degree of negligence or fault involved in the accident will impact the multiplier. For example, if the driver was intoxicated or speeding recklessly, the multiplier could be a higher number.

The Per Diem Method

The per diem method is another way to calculate pain and suffering. Per diem is Latin for per day. In this method, the plaintiff demands a specific dollar amount for each day he or she has experienced pain and suffering from the accident. There are several challenges involved with justifying a daily rate. The insurance company or opposing defense counsel will almost certainly challenge the per diem method because it is usually based on the injured plaintiff's daily earnings. Working with an experienced car accident lawyer will help you evaluate the best strategy for calculating your damages so you can obtain a maximum value for your claim.

Discuss Your Case With an Aggressive Car Accident Lawyer in New Jersey

Personal injury accidents that involve catastrophic injuries are typically complex. If you or your loved one have been seriously injured in a personal injury accident in New Jersey, you need an aggressive lawyer. Attorney David A. DiBrigida Has extensive knowledge and experience calculating the maximum value of injury victims’ claims using his professional knowledge and experience. 

Working with him will take a significant amount of guesswork out of trying to figure out how much your claim is worth. He also offers clients a free initial consultation and does not charge them until he wins their compensation. Contact him today to schedule your free initial consultation.