A car crash causes more than just vehicle damage. Injuries affect your mobility, your work, and even the simplest daily routines. Medical bills arrive quickly, paychecks stop, and pain lingers longer than expected. The financial and physical toll of an accident makes compensation from a settlement essential for victims to effectively heal. Understanding the different factors that impact settlements in New Jersey is crucial for accident victims to ensure they receive fair compensation for their losses after a crash. Keep reading to learn about what affects car accident settlement calculations in New Jersey.
Economic Damages in New Jersey
Economic damages are the primary part of most New Jersey car accident settlements. They represent the measurable financial losses you suffer due to the accident. Their purpose is to compensate you for the actual monetary cost of the accident. Economic damages often include medical expenses, lost wages, and other out-of-pocket costs related to the crash. Let us take a closer look at what this can involve.
Medical Costs
Emergency care forms the foundation of any car accident settlement. Ambulance rides, X-rays, MRIs, and hospital stays add up quickly. However, medical expenses can continue long after hospital discharge. Many car accident victims require follow-up medical care, including surgeries, therapy, prescriptions, and assistive devices—all of which further raise costs.
Although some crash injuries heal with time, others require long-term treatment. Spinal damage, traumatic brain injuries, and nerve pain often lead to years of rehabilitation.
An accident settlement takes all these medical expenses into account, including past medical bills, future care, home modifications, and ongoing therapy.
Lost Income and Career Changes
Missing work after a crash can be more than just a temporary setback, and lost wages may go beyond missed paychecks. If an injury prevents someone from returning to the same job—or forces them to take lower-paying work—the financial toll can stretch for years.
For that reason, lost income in a New Jersey car accident settlement can include:
- Lost wages—if you could not work during recovery;
- Future income loss—if the injury affects long-term earning ability; and
- Job training—if a new career path is necessary.
For example, a construction worker who can no longer lift heavy materials due to an accident-related injury may need to change to a less lucrative profession. As a result, they could be eligible to recover compensation for that lost income in a settlement.
To determine the value of damages due to lost income for a settlement, an attorney will review your tax records, career history, and medical evaluations.
Noneconomic Damages in New Jersey
Not every loss comes with a receipt. Noneconomic damages in New Jersey account for the emotional and physical toll of a car accident injury.
Chronic pain, anxiety behind the wheel, or the inability to enjoy hobbies can affect someone just as much as medical bills. For that reason, New Jersey crash settlements often include the following noneconomic damages:
- Ongoing physical pain;
- Emotional distress, including PTSD and anxiety; and
- Loss of enjoyment in life.
For example, a person who loved running before an accident but now struggles to walk without discomfort experiences a real loss, even without a direct financial cost. Noneconomic damages acknowledge that reality and help compensate for the impact these losses can have on a victim’s daily life and emotional well-being.
Other Factors Impacting Accident Settlements in New Jersey
There are some other important details that can influence the value of a crash settlement.
The Insurance Claims Process in New Jersey
Insurance companies play a major role in determining a potential settlement. Insurers consider police reports, medical records, and past case settlements when calculating a potential payout.
New Jersey follows a no-fault insurance system, meaning a driver’s own insurance covers medical costs up to a certain amount, regardless of who caused the crash. The type of insurance plan you have affects your ability to pursue pain and suffering compensation in NJ. If you selected the “limited right to sue” option, you can only seek damages for severe injuries. However, the “unlimited right to sue” plan allows you to pursue full compensation regardless of injury severity.
Liability
Liability can also affect the final settlement. New Jersey follows a comparative fault rule, meaning compensation will be reduced if an injured person is partially responsible for the accident. For example, if someone is found to be 20% at fault, their settlement is reduced by that percentage. If someone is 51% or more at fault, they cannot recover damages.
Why Petro Cohen, P.C., Is the Right Choice for New Jersey Car Accident Claims
At Petro Cohen, P.C., we understand that an accident affects more than just medical bills—it impacts income, mobility, and quality of life. Car accident settlement calculations in New Jersey should reflect these losses, not just the numbers on a hospital bill. Our team of dedicated personal injury lawyers has decades of combined experience fighting for New Jersey drivers harmed on the roads. Our legal insights and deep familiarity with the New Jersey insurance system has helped countless victims recover the financial support they need to get their lives back on track.
Call Petro Cohen, P.C. today for a free consultation. Get answers about what goes into a fair settlement.
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