Detailed Answer: How valuing a broken arm claim works in New Jersey

1) Start with complete documentation

Before you set a number, gather everything that proves liability and damages. Typical items:

• Medical records: ER notes, imaging (X‑rays, CT), operative reports if surgery occurred, clinic and PT notes.
• Medical bills and Explanation of Benefits (EOBs).
• Proof of lost income: paystubs, employer notes, tax records.
• Photos of the injury and accident scene, witness statements, police reports (if any).
• Records of out‑of‑pocket costs (travel to appointments, prescriptions, assistive devices).

2) Calculate economic (special) damages

Economic damages are out‑of‑pocket losses that you can document:

• Past medical expenses: all treatment bills already incurred.
• Future medical expenses: projected costs for ongoing care, braces, future surgery, or physical therapy. Use a treating doctor or life‑care expert estimate when costs extend into the future.
• Lost wages and lost earning capacity: wages lost during recovery and, if the injury causes lasting limitation, any projected reduction in future earnings.
• Other measurable costs: prescription costs, travel to medical care, child care paid because of your injury.

3) Estimate non‑economic (general) damages — pain, suffering, and loss of normal life

Non‑economic damages compensate for pain and suffering, mental anguish, and loss of enjoyment. For a broken arm, the amount depends on:

• Severity of the fracture (simple break that healed vs. complex fracture requiring surgery or causing permanent limitation).
• Duration of pain and disability and need for long‑term care or therapy.
• Permanent impairment or loss of range of motion.
• Impact on work, hobbies, and family life.

Common valuation approaches used by claimants and adjusters:

• Multiplier method: Multiply past economic damages (sometimes including reasonable future economic losses) by a number that reflects severity (commonly 1.5–5 for many personal injuries). A simple, short fracture that heals fully might justify a lower multiplier; a surgically repaired fracture with permanent limitation may justify a higher multiplier.
• Per‑diem method: Assign a daily dollar amount for pain and multiply by the days of recovery (less common in New Jersey but still used by some negotiators).

4) Consider New Jersey legal factors that affect value

Important legal issues in New Jersey that affect the demand number:

• Comparative fault: If you bear partial responsibility for the accident, your recovery may be reduced in proportion to your share of fault. Make sure the demand explains why the other party is at fault and addresses any potential counterarguments.
• Statute of limitations: You must file suit within the time limit for personal injury claims. Check New Jersey deadlines and plan the demand and possible lawsuit timing accordingly. See the New Jersey laws and court self‑help pages for timing rules: New Jersey Laws & Statutes and New Jersey Courts Self‑Help.
• Health care and lien obligations: If medical providers or an insurer have liens or subrogation claims (including Medicare/Medicaid), you must account for them when calculating a realistic net recovery.

5) Create a realistic demand number — an example

Hypothetical example for a broken arm that required surgery and six months of therapy:

• Past medical bills: $25,000
• Projected future medical care: $10,000
• Lost wages: $8,000
• Economic total: $43,000
• If the injury left moderate permanent limitation, you might apply a multiplier of 2–4 for pain and suffering. Multiplier 3 example: $43,000 x 3 = $129,000 in non‑economic damages.
• Demand total (economic + non‑economic): $43,000 + $129,000 = $172,000.

This example is illustrative. The appropriate multiplier or per‑diem varies by facts, medical evidence, and how persuasive your documentation is.

6) Drafting the demand letter and negotiation strategy

Key elements of an effective demand letter:

• Clear summary of the accident and the other party’s liability.
• Concise medical narrative showing treatment, prognosis, and permanency (with supporting records attached).
• Itemized economic damages and supporting bills/EOBs.
• Explanation and calculation of your non‑economic damages and the total demand amount.
• Deadline for response and a statement that you are prepared to file suit if the demand is not resolved.

Strategy tips:

• Set the initial demand higher than the minimum you will accept to allow room for negotiation, but keep it supportable by facts and records.
• Be ready to justify the number with medical records, expert reports, and wage documentation.
• Expect adjusters to start low. Aim to show why your facts justify a higher number rather than simply asserting a large figure without proof.

7) When to hire an attorney

Consider getting an attorney if:

• The injury required surgery, caused permanent impairment, or involves significant lost wages.
• The insurance company fights liability or offers a low settlement.
• There are lien issues, Medicare or Medicaid, or multiple parties involved.

An attorney experienced in New Jersey personal injury practice can obtain medical experts, prepare a demand, negotiate with insurers, and, if necessary, file suit within applicable deadlines.

Helpful Hints

• Do not accept the first offer without checking medical records and considering future needs. Early settlements often undervalue future care and pain.
• Keep a recovery journal: note daily pain, limitations, and how the injury affects life and work — juries and adjusters value contemporaneous records.
• Obtain clear medical opinions about permanency or limitations. A treating physician’s statement about long‑term effects raises settlement value.
• Request itemized bills and EOBs from providers; unresolved liens reduce your net recovery, so address them early in negotiations.
• Ask about the insurer’s valuation method: some carriers publish internal guidelines; knowing theirs helps you set a realistic demand and anticipate responses.
• Be mindful of deadlines. If an insurer drags negotiations past the statute of limitations, you could lose the right to sue. Check New Jersey deadlines on official pages: NJ Laws & Statutes and NJ Courts Self‑Help.