How Is Personal Injury Compensation Calculated in Texas?

Understanding Settlement Value in a Houston Injury Claim

After an accident, one of the first questions most people have is:

“How much is my personal injury claim worth?”

Whether you were hit on I-45, slipped at a store in River Oaks, or suffered injuries due to a defective product, this guide will help you understand how compensation is calculated under Texas law—and what factors can raise or lower your settlement.

Let’s break it down.

What Is “Compensation” in a Personal Injury Case?

In legal terms, compensation = damages. It’s the money awarded to cover the losses (both financial and emotional) you’ve experienced because of someone else’s negligence.

Damages fall into two main categories:

1. Economic Damages (a.k.a. “Special Damages”)

These are actual, measurable costs related to your injury:

• Medical Bills – ER visits, surgery, therapy, prescriptions
• Future Medical Costs – Ongoing treatments, rehab, devices
• Lost Wages – Time you had to take off work
• Lost Earning Capacity – If your injury affects your future job ability
• Property Damage – Like a totaled vehicle in a car crash

Important: Keep all receipts, medical records, and tax returns. These directly affect the claim amount.

2. Non-Economic Damages (a.k.a. “General Damages”)

These damages are harder to measure but just as real:

• Pain and suffering
  
• Emotional distress
  
• Mental anguish
  
• Loss of enjoyment of life
  
• Disfigurement or scarring
  
• Loss of companionship (in wrongful death cases)
  

Since these aren’t tied to bills, they’re often calculated based on:

• The severity of the injury
  
• Recovery time
  
• Long-term impact
  
• Psychological effects
  

What Affects How Much You Can Receive?

These key factors impact your total settlement:

• Severity of injuries
  
• Length of medical treatment
  
• Permanent disability or scarring
  
• Psychological impact (PTSD, anxiety, depression)
  
• Your share of fault in the accident
  
• Policy limits of the at-fault party’s insurance
  
• Your coverage (UM/UIM, PIP, MedPay)
  

Texas Rule: Modified Comparative Fault

Texas follows a modified comparative fault system:

• If you’re more than 50% at fault → No compensation
  
• If you’re 50% or less at fault → Compensation is reduced by your fault percentage %

View the rule – Texas Civil Practice & Remedies Code §33

Example:
You’re awarded $100,000 but found 25% at fault. → You receive $75,000

How Long Do You Have to File a Claim?

The statute of limitations in Texas is 2 years from the date of injury.
The whole law is here – CPRC §16.003

FAQs: Compensation in Personal Injury Cases

Q: Will I get the full amount of my claim?
Not always. Negotiations with insurers may lead to a lower figure unless you sue and win in court.

Q: Are settlements taxable?
Physical injury settlements are usually not taxed, but check with a tax advisor.

Q: Can I still get compensation if I have insurance?
Yes. Your policy may kick in first (e.g., PIP or MedPay), and you can still seek damages from the at-fault party.

Resources for Houston Injury Victims

• Texas Department of Insurance – Auto Coverage
• Texas Comparative Fault Law – CPRC §33
• Texas Statute of Limitations – CPRC §16.003
• Houston Legal Help

It’s Not Just About Bills—It’s About Justice

Compensation is meant to restore your life—not just cover a hospital invoice. But you need proof, strategy, and support to calculate the full value.

Don’t trust an insurance adjuster to “do what’s fair.” Their job is to pay as little as possible.

Need Help Understanding the Value of Your Case?

Mostyn Law helps Houston injury victims recover the maximum compensation they deserve—with no out-of-pocket costs unless we win.

Start your free case review now: https://www.mostynlaw.com/contact/