How Is Personal Injury Compensation Calculated?
September 10, 2025
Personal injury claims serve a critical purpose for those who suffer physical, emotional, or financial harm because of someone else’s carelessness. Whether it’s a traffic accident, a workplace incident, or another form of negligence, the question clients often ask first is how compensation is calculated. The answer involves more than a simple number.
At The Law Offices of Feeley & LaRocca, we help clients, especially public employees such as police officers and firefighters, understand what their case may be worth and how that value is determined under New Jersey law. If you’ve been injured and need legal guidance, reach out to our firm today to learn what compensation may be available in your case.
Identifying What Losses Can Be Compensated
The starting point in any personal injury case is understanding what kinds of damages are recoverable. These generally fall into two categories: economic and non-economic.
Economic damages include things that can be documented with receipts or pay stubs. These may involve:
- Medical treatment costs, including surgeries, physical therapy, and prescriptions
- Lost wages from missed work
- Reduced future earning ability
- Property damage (if applicable)
Non-economic damages refer to the human impact of the injury. This can include emotional distress, disruption of daily life, and pain. Assigning a dollar amount to these losses is more challenging, but equally important.
A personal injury lawyer will work with you to identify every form of harm you’ve suffered and ensure that no type of damage is overlooked during negotiations or litigation.
How Insurance Companies Estimate Value
Insurers often use formulas to put a value on non-economic damages. One approach is the “multiplier method,” which involves calculating the total of your economic damages and multiplying it by a factor based on the severity of the injury. For example, a moderate injury might be multiplied by 2 or 3, while a life-altering injury could result in a multiplier of 5 or higher.
The “per diem method” is another tactic, assigning a daily monetary value to your suffering and multiplying it by the number of days you are affected.
Neither method is required under New Jersey law, but they are common in insurance negotiations. That’s why it’s crucial to have a personal injury attorney who knows how to evaluate these estimates and counter lowball offers with proper documentation and a strategic legal approach.
Key Variables That Can Affect Your Case Value
No two personal injury cases are exactly alike. Several key variables influence the amount of compensation a victim may receive. These include:
- Severity of injuries: The more serious the injury, the greater the medical costs and pain-related damages.
- Length of recovery: Extended recovery periods typically result in higher compensation for both economic and non-economic damages.
- Permanency: If the injury results in a lasting disability, the case value may increase significantly.
- Shared fault: Under New Jersey’s modified comparative negligence rule (N.J.S.A. 2A:15-5.1), a claimant can still recover damages as long as they are not more than 50% responsible. However, their compensation will be reduced in proportion to their level of fault.
A knowledgeable accident injury lawyer can help you understand how each of these factors may apply to your case and assist in building the evidence to support your claim.
Why Documentation Makes or Breaks the Claim
The strength of your claim often rests on your ability to prove losses with clear records. Medical bills, diagnostic reports, therapy notes, wage statements, and even personal journals describing pain or limitations can all be used to support your compensation request.
At The Law Offices of Feeley & LaRocca, we work closely with clients to collect and organize this information early in the process. Our practice areas include personal injury representation for both public and private individuals, and we understand the evidentiary requirements needed to secure a strong outcome.
Legal Representation Adds Leverage
Handling a personal injury claim without legal help can place you at a disadvantage, especially when facing an insurance adjuster whose job is to minimize payouts. Hiring a personal injury lawyer in New Jersey gives you the ability to challenge undervalued offers, introduce supporting legal arguments, and, when necessary, take the matter to court.
Our clients often share their experiences with us after their cases are resolved. You can read their reviews on our testimonials page to see how our firm handles injury cases across a wide range of circumstances.
A Trusted Advocate Can Make the Difference
Calculating the full value of a personal injury case isn’t just a matter of adding up receipts. It requires legal expertise, a thorough understanding of local laws, and the ability to challenge insurers when they attempt to minimize your losses effectively. The Law Offices of Feeley & LaRocca provides representation that prioritizes your health, rights, and recovery. Whether you’re a public employee or private citizen, contact us today to begin the process of securing the compensation you’re entitled to.