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How Personal Injury Settlements Are Calculated

By California Personal Injury Attorneys · May 21, 2026

Learn how personal injury settlements are calculated in California, including how damages are valued, how multipliers work, and what factors insurance companies and juries consider when awarding compensation.

How Personal Injury Settlements Are Calculated in California Personal injury settlements in California are calculated by adding up all damages — both economic (financial) and non-economic (pain and suffering) — and then applying negotiating leverage based on the strength of the liability case and available insurance coverage. Step 1: Calculate All Economic Damages All past medical bills (ER, specialists, surgery, therapy) Estimated future medical costs if ongoing treatment is needed Lost income from time missed at work Reduced future earning capacity if you cannot return to your prior…