When someone is injured in an accident, the law allows them to recover damages. But how are these damages actually calculated? The process is more structured than it may seem. First, all financial losses are added up, such as medical bills, lost income, and damaged property. Then, the focus shifts to emotional and physical suffering, which can’t be measured with receipts but still carries weight.
In California, special rules like Proposition 213 can limit what’s recoverable for uninsured drivers injured in a crash. The court also considers who was at fault, and if the injured person shares responsibility, their compensation is reduced. In rare cases, punitive damages are awarded as a punishment for serious wrongdoing. Finally, the total claim depends on how well all losses are presented and supported.
The Process of Calculating Personal Injury Damages
Let’s take a closer look at how losses are reviewed, measured, and calculated in a personal injury claim.
Step 1: Add Up All Financial Losses (Economic Damages)
These damages cover any loss that can be backed up with financial proof. They include amounts already paid for medical care, as well as the cost of future treatments that may be needed. If the injured person was unable to work, lost wages are included, too.
In some cases, this may also involve the loss of future income if the person can no longer perform the same work. Damaged personal items, like a car, clothing, or electronics, can also be claimed. Even everyday expenses, such as help around the house or transportation costs, are part of economic damages.
Step 2: Identify Emotional and Physical Impacts (Non-Economic Damages)
These damages are about what a person goes through emotionally or physically after an injury. They are harder to measure but can have a deep impact. Common examples include pain, fear, anxiety, loss of sleep, embarrassment, and changes in self-image or confidence. In serious cases, disfigurement or long-term mental suffering is also considered. If the injury damages a close relationship, the spouse may claim "loss of consortium," which refers to the loss of companionship or support in the relationship. These losses do not come with receipts, but the law still allows for recovery in these areas.
Step 3: Apply California’s Insurance Rule (Proposition 213)
California has a rule known as Proposition 213. It applies when someone is injured in a car crash but did not have auto insurance at the time. If that happens, they may still recover economic damages like medical costs, but they cannot claim non-economic damages. This includes pain and suffering, emotional distress, and similar losses. This rule can make a major difference in a case, and some lawyers choose not to take cases that fall under Proposition 213 because of how much it limits what a client can recover.
Step 4: Reduce Damages if Fault Is Shared (Comparative Fault)
Not all injuries happen because of one person’s mistake. Sometimes, both parties are partly responsible. In California, the law uses what’s called comparative fault. This means the amount of damages awarded is reduced by the injured person’s share of responsibility.
For example, if the injured person is found to be 25% at fault, they will receive only 75% of the total damages. If the other party is 75% responsible, the injured person can only recover that percentage. This rule applies to both economic and non-economic damages.
Step 5: Consider Punitive Damages for Severe Misconduct
Most damages are meant to repay the injured person for their losses. But in extreme cases, the court may award punitive damages, which are meant to punish the person who caused the harm. These only apply when there is proof of fraud, oppression, malice, or reckless behavior.
Punitive damages are not common, and they are not awarded in most personal injury cases. However, they can be significant in cases where they apply. The amount is usually limited by law.
Step 6: Make Sure All Losses Are Properly Presented
Knowing what can be claimed and how to present those claims properly is not always simple. Many people are unaware of the full extent of their losses, especially when it comes to non-economic damages like emotional distress or future care needs.
A personal injury lawyer can help recognize all areas where recovery is possible. They also know how to present evidence so that each type of damage is taken seriously and given the proper value. This can make a major difference in how much compensation a person receives.
Conclusion
Understanding how damages are calculated means looking beyond just hospital bills or car repairs. A complete claim includes measurable costs, like medical treatment and lost wages, and personal losses, such as anxiety or reduced quality of life. But not every situation is the same. In California, Proposition 213 prevents uninsured drivers injured in a crash from recovering non-economic damages. Shared fault might also reduce the final payout.
And in serious cases, the court may even award punitive damages to hold the wrongdoer accountable. The final step ties it all together: to present every type of damage clearly with evidence and strategy.
At Golden State Lawyers, we guide clients through each step, making sure nothing is left out and every loss is properly valued.
Robert Bohn, Jr.
Attorney
For more than 40 years, the lawyers at Robert Bohn, Jr. has dedicated their practices to personal injury law, representing people who have been injured or damaged due to the negligence or carelessness of others. For most people, handling a personal injury claim can be complicated and stressful.
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