What can accident victims actually recover after an accident? Most people don’t know.
Suddenly you’re faced with mounting medical bills. You can’t go to work. And the physical pain after an accident can be overwhelming.
But here’s the thing…
The legal system has a process in place to prevent accident victims from shouldering that financial burden.
Knowing the different types of damages is step one.
What Are Damages in a Personal Injury Case?
“Damages” refers to the money the court awards to someone injured because of someone else’s negligence.
There are three types — economic, non-economic, and punitive. Each one compensates for a different type of loss. Understanding the differences is critical to maximizing your case.
Injury victims should talk to a personal injury lawyer to figure out what types of damages apply to their individual case. Every accident is unique. It depends on the circumstances of the accident, how the injuries were caused, and the specific laws of each state.
But let’s take a closer look at each one…
Economic Damages: Money Losses With Receipts
Economic damages — also known as “special damages” — refer to the financial expenses that result directly from the accident.
This includes any losses that can be backed up with bills, invoices, pay stubs, or receipts.
Examples of economic damages include:
- Medical bills — hospital stays, surgeries, medications, and physical therapy
- Lost wages — time spent away from work while injured
- Lost earning capacity — if injuries affect your ability to earn a living in the future
- Property damage — repairing or replacing a car, clothing, furniture, and more
- Out of pocket expenses — travel to doctor’s appointments, hiring home care help, buying medical supplies, etc.
Economic damages are important because…
Imagine if you had to pay for all of these expenses out-of-pocket. According to the Department of Transportation, motor vehicle crashes caused an estimated $513.8 billion in total economic costs in 2023.
That’s billions of dollars. Most accidents don’t lead to that level of damage. But that doesn’t mean you should ignore these costs. Every penny spent should be kept and added to a damages claim.
Non-Economic Damages: Non-Monetary Losses Suffered
Some losses aren’t reflected in your bank account.
Non-economic damages are intangible injuries that can’t necessarily be tied to a specific receipt or bill. They are absolutely 100% real costs. They just might not come with an invoice.
Non-economic damages include:
- Pain and suffering — chronic pain experienced because of the accident
- Emotional distress — mental trauma caused by the accident
- Loss of enjoyment of life — not being able to do the things you love to do
- Loss of consortium — the negative impact the injury has had on your relationship with your spouse
- Disfigurement or disability — if the injuries resulted in permanent and visible scars or physical limitations
Add all of the non-economic damages together. They can equal a significant amount of money.
The tricky part is proving these damages to insurance companies. Since they’re subjective, there’s no dollar amount to point to.
Insurance companies will use something called the “multiplier method.” Economic damages are multiplied by a number (usually between 1.5-5). That total is based on the severity and lifespan of the injuries.
A broken arm might be towards the lower end. A permanent neck injury that affects mobility? Much higher. The greater the injury’s impact on life, the higher non-economic damages will be.
That means having a lawyer on your side who can fight for every dollar you deserve.
Punitive Damages: When there’s Extraordinary Conduct Involved
Economic and non-economic damages cover the majority of personal injury cases. But there is another type of damage that could apply…
Unlike the other two categories, punitive damages aren’t awarded to compensate victims. If awarded, punitive damages are meant to punish the defendant.
They apply in situations where the defendant’s behavior was egregious. Reckless. Willfully negligent. Or malicious.
Typical examples include drunk driving accidents, dangerous products knowingly put on the market, or workplaces that don’t follow safety regulations.
If a case warrants punitive damages, the amount awarded is typically on top of economic and non-economic damages.
They exist to punish the defendant.
How Injury Lawyers Ensure You Recover Maximum Compensation
Here’s a fact most people don’t know…
The average person walks away from money on the table by not knowing what they’re entitled to. Insurance companies aren’t in the business of paying you what you deserve. Without legal representation, it’s easy to accept a lowball settlement.
Personal injury lawyers know how to:
- Identify all the categories of damages that apply
- Ensure you have documentation so damages aren’t overlooked
- Negotiate with insurance companies
- Go to trial if a fair settlement can’t be reached
Only 4-5% of personal injury lawsuits go to trial. But you have to be willing to go all the way to see that number. Having a lawyer who will fight until the end (if necessary) forces insurance companies to pay up.
Statistics show that 70% of people who filed a personal injury claim received either a settlement or a court award in their favor. You can bet nearly all of those victims hired a lawyer.
Wrap Up: Types of Damages Injury Victims Recover
Knowing what types of damages you can pursue after an accident is critical to getting the compensation you deserve.
Remember…
- Economic damages are awarded to compensate for direct financial costs associated with the accident. If it comes with a receipt, it’s an economic damage.
- Non-economic damages are subjective injuries that don’t have a specific dollar amount. They include things like pain, suffering, and emotional trauma.
- Punitive damages are awarded when the defendant’s behavior was intentional, or extremely negligent. They aren’t awarded in most cases.
Your accident might not qualify for every category. But that’s ok. An attorney will maximize the damages categories that do apply.
Don’t make any decisions about your case until you’ve consulted with a lawyer. Always know your options before accepting a settlement or signing any documents.
