How Do New Jersey Courts and Insurance Companies Calculate Pain and Suffering?

If you were injured in an accident in New Jersey, you may be aware that you can recover compensation for your medical bills and lost wages. But what about the physical pain and emotional damage that linger even after your bills are paid? Non-economic damages like pain and suffering are difficult to calculate, but they can be included in your personal injury settlement. Read on and work with a skillful Monmouth County personal injury attorney for experienced legal counsel during your case.

How Do NJ Courts and Insurance Companies Calculate Pain and Suffering?

New Jersey does not have one legally mandated formula that insurance companies or courts implement to calculate pain and suffering. Instead, two main methods are commonly used: the multiplier method and the per diem method. During a personal injury case, insurance companies, juries, and attorneys may apply one or both of the following.

1. Multiplier method: This method takes the injured person’s total economic damages, like their medical bills, rehabilitation costs, and lost wages, and multiplies that number by a factor typically between 1.5 and 5. The multiplier is chosen depending on the severity, duration, and impact of the injury. For example, a low multiplier of 1.5 or 2 would be selected if the injury is minor and only requires a short time to recover. However, 4 to 5 would be chosen for permanent disabilities, disfigurement, severe trauma, etc. The outcome of this multiplication equals the victim’s non-economic compensation.
2. Per diem method: This method assigns a daily dollar amount to the victim’s pain and suffering depending on the severity of the injury and the extent to which it impacts their daily life. The daily rate is multiplied by the number of days the victim is expected to suffer, starting from the date of the injury and ending at the maximum recovery.

Both of these methods are accepted and considered fair determinations of pain and suffering. Sometimes the two approaches will be combined, like using the multiplier method for the first year, then transitioning to a per diem calculation for any ongoing pain or suffering.

What Factors Are Most Important in These Calculations?

Because physical pain and emotional distress are not tangible losses and do not have a clear monetary value, providing ample evidence is crucial in ensuring that you receive a fair settlement. You should come prepared with doctor notes, diagnostic tests, and ongoing treatment records to establish both your physical injuries and mental distress, as well as keep a personal record of your experience during the recovery process. Testimony from friends, family, coworkers, and employers can also speak to how your accident has impacted your life.

Many factors influence the value that will be assigned to your pain and suffering. The most influential consideration is certainly the severity and permanence of the injury. The more serious and long-lasting the injury, the higher your settlement will typically be.

Courts and insurance companies must also consider the impact the injury has on your daily life. Are you unable to return to your job or earn at the same rate? Can you no longer complete daily tasks or raise your children? Have you been forced to give up hobbies and passions because you can’t physically participate in them anymore? These are all important factors.

For more information and to obtain skilled legal representation, reach out to an attorney at The Wilton Law Firm today.