Economic Damages

Understanding Economic Damages in Car Accident Cases

When you're injured in a crash caused by someone else’s negligence, you may be entitled to compensation for the financial toll the accident takes on your life. These quantifiable losses are known as economic damages — and they’re a core part of any personal injury claim.

Unlike emotional distress or pain and suffering, economic damages are based on real numbers — hospital bills, lost wages, repair estimates, and more. If you've kept receipts, records, or statements, you're already helping build the foundation of your case.

What Counts as Economic Damages?

Economic damages include any out-of-pocket costs you’ve had to pay (or will pay in the future) because of the accident. That may include:

• Medical expenses – from ER visits and prescriptions to physical therapy and long-term care
• Lost wages – including missed workdays, freelance income, or self-employment disruptions
• Reduced earning potential – if your injuries affect your ability to work in the future
• Vehicle repair or replacement – for damage caused by the crash
• Transportation or home care – if you need mobility help, rides to appointments, or home assistance
• Funeral expenses – in fatal crash cases, surviving family members may also claim funeral and burial costs

Every case is different, so the types and amount of compensation will depend on your unique situation and the evidence provided.

How Economic Damages Are Calculated

Insurance companies don’t just take your word for it. They require clear, documented proof — and in some cases, expert insight into what your future costs may look like.

Your legal team will typically calculate these damages by:

• Gathering all medical bills, receipts, and repair invoices
• Documenting missed work and lost income through pay stubs, tax returns, or employer letters
• Estimating long-term financial impact, like ongoing treatment or reduced earning ability
• Working with medical or economic experts, especially for severe or life-altering injuries

Thorough documentation is key — and it's one of the main reasons working with a personal injury attorney can increase your potential recovery.

Economic Damages vs. Non-Economic Damages

Economic damages represent the tangible costs of your injury. But you may also be entitled to non-economic damages, which cover:

• Pain and suffering
• Emotional trauma
• Loss of enjoyment of life

Learn more about Non-Economic Damages →

If you've been injured in an accident, economic damages help you get back on your feet — not just physically, but financially. A good settlement should make you whole, not just cover the basics. Let a qualified attorney help make sure nothing gets left out.

Speak to a Car Accident Lawyer