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After a car accident, it’s natural to focus on the immediate aftermath—getting medical care, dealing with repairs, and figuring out how to get back to normal. But once the dust settles, one big question often remains: how much is your claim worth?
Calculating damages in a New Jersey car accident case involves more than just adding up repair bills. It requires a clear understanding of both economic and non-economic losses, as well as how state laws may impact the recoverable damages. Here’s what you need to know.
What Are Economic Damages?
Economic damages are the financial losses you can document with bills, receipts, or records. These are typically the most straightforward to calculate. Common categories include:
- Medical expenses: This includes emergency care, hospital stays, surgeries, physical therapy, follow-up visits, prescription medications, and any future treatment you may need.
- Lost income: If your injuries prevent you from working, you may be entitled to compensation for wages you’ve lost during recovery.
- Loss of earning capacity: If you can’t return to your previous job—or can’t work at all—you may be able to recover for long-term income loss.
- Property damage: This typically covers the cost of repairing or replacing your vehicle, but can also include damaged personal items, such as phones, car seats, or medical equipment.
What Are Non-Economic Damages?
Not all losses after a car accident come with a receipt. Non-economic damages attempt to account for how the injury has affected your daily life, emotional well-being, and long-term outlook. These can include:
- Pain and suffering
- Emotional distress
- Loss of enjoyment of life
- Loss of companionship (in wrongful death or severe injury cases)
Calculating non-economic damages is more subjective and can vary widely. Courts and insurers may look at the severity of your injury, length of recovery, psychological impact, and how your life has changed since the accident.
How Does Insurance Factor In?
New Jersey is a no-fault insurance state. That means your own insurance company (through Personal Injury Protection, or PIP) initially covers your medical bills and some lost wages—regardless of who caused the crash.
But this system also has limitations. If your injuries meet New Jersey’s “verbal threshold” or “limitation on lawsuit” standard, you may be allowed to pursue additional compensation from the at-fault driver, including for pain and suffering.
This makes it critical to understand your policy and how it interacts with the broader damages you may be entitled to. A lawyer can help evaluate whether your injuries qualify for a third-party claim beyond PIP.
What Is Comparative Fault in a Car Accident?
New Jersey follows a modified comparative fault rule. If you are found to be partially at fault for the accident, your compensation may be reduced by your percentage of fault. If you are more than 50% responsible, you may not recover anything at all.
For example:
- You are awarded $100,000 in damages.
- You are found 20% at fault for the crash.
- Your compensation would be reduced to $80,000.
This makes it essential to carefully evaluate all evidence (e.g., police reports, witness statements, vehicle data) to ensure your fault percentage is fair.
Why Legal Representation Matters
At Nagel Rice, we’ve helped clients across New Jersey recover full and fair compensation after serious car accidents. Our team collaborates closely with economists, medical professionals, and other experts to accurately assess damages and effectively counter lowball insurance offers.
Whether your case settles or goes to court, having the proper legal support ensures that your damages are correctly calculated and vigorously pursued. Contact us today to consult with an experienced car accident attorney.