(713) 352-7975

Back To Blog

Personal Injury Compensation Calculation: The 3 Key Factors Considered

How Personal Injury Compensation is Calculated: 3 Key Factors Considered

The amount of compensation that’s available for a personal injury case depends on:

  1. The type of negligence involved
  2. The liable party or parties
  3. The damages sustained

Here’s how each of these factors can impact personal injury compensation and what you need to know whenever you’re involved in one of these cases.

3 Factors That Impact Personal Injury Compensation Amounts

While these are not the only factors that affect the amount of personal injury compensation, they are among the most influential. Here’s why.

Type of Negligence

What type of careless or reckless action contributed to the injury-causing incident? Was a pattern of negligence involved? And was the negligent act committed intentionally?

The answers to these questions can help determine the nature of the negligence involved. In cases where the negligence was especially horrific or part of a pattern:

  • Punitive damages may come into play in these cases: These damages are intended to punish a negligent party and deter others to keep the community safe. For example, if a manufacturer knowingly put an unsafe product into the public’s hands and that product hurts people, the manufacturer can be ordered to pay punitive damages.
  • Compensation amounts may be higher: When punitive damages are involved, these will be in addition to compensatory damages, which are intended to compensate the injured for their losses and suffering. The combination of compensatory and punitive damage usually means far greater compensation for a given case.

The Liable Party or Parties

Who exactly is liable for the negligence that caused harm? Specifically, it will be essential to determine whether:

  • More than one party is liable: When multiple parties are liable for a given incident and the resulting harm it caused, each of the parties can be accountable for compensating the victims. That can mean multiple claims, multiple payouts, and greater compensation amounts.
  • Whether the liable parties include individuals and/or companies: Whenever companies are among the liable parties, compensation amounts for personal injury cases can increase. One reason is that companies tend to have more insurance coverage than individuals carry. Another is that companies are far more likely to be on the hook for punitive damages. Here, it’s important to note that companies may also have more reasons to fight personal injury cases. So while claims against businesses may be associated with greater compensation amounts, they can also be far more complex and contentious.

The Damages Sustained

How extensive and expensive have the injuries and losses been to the victims? What have the victims lost and what will they lose in the future? And will the victims be living with permanent impairments that have long-term impacts on their quality of life?

The more severe the damages are, the greater the compensation for a given case can be. That’s because compensation for cases that involve more serious and extensive losses can include damages for (not necessarily limited to):

  • Past and future medical bills: From ambulance and emergency room bills to ongoing doctor’s visits, surgery, medications, and more, all of the medical costs that have been—and will be—incurred to treat the injuries can be included in compensation for a personal injury case.
  • Past and future lost earnings: This can include lost wages, commissions, bonuses, benefits, and more.
  • Irreversible impairments and losses: This can include permanent disabilities, disfigurement, scarring, psychological trauma, and more. It can also include the permanent impacts on relationships, like the loss of consortium with a spouse due to the injuries.

Find Out How Much Your Potential Claim Is Worth: Contact the Amaro Law Firm

A Houston personal injury lawyer at the Amaro Law Firm is ready to evaluate your claim and explain how to maximize your potential recovery.

Call (713) 352-7975 or Contact Our Firm
for Your FREE, No-Obligation Consultation

At the Amaro Law Firm, we know that personal injury compensation can’t change the past or erase the harm caused by other’s negligence. We also know, however, how recoveries from these cases can help people restore their lives and heal. That’s why our attorneys are devoted to helping victims pursue the full compensation they deserve.

If you or a loved one has been harmed by negligence, let us help you get on the path to recovery, justice, and the best possible resolution. We’ll explain how we can help you during a free consultation.

The Amaro Law Firm’s record of outstanding advocacy and success in all types of personal injury cases has earned us a 5-star rating on Google and Facebook, glowing testimonials from former clients, and a 10 rating on Avvo.