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After a car accident, if there were injuries and the accident was caused due to someone’s negligence, you may be entitled to receive compensation for your losses. The compensation you receive is called damages and is broken down into two categories: economic damages and non-economic damages. An easy way to differentiate between the two types is that economic damages have a specific price tag on them and non-economic damages need to be calculated to a fair value for having to deal with the injuries from the accident. Let’s break down the difference between the two into greater detail.
Economic damages are any sort of loss you had from the accident that has a specific price tag on it. These are things such as property damages, medical expenses, physical therapy, transportation to medical appointments, lost wages, future lost wages, and more. These costs are easy to calculate because they have a specific price tag associated with them. We add all of these up to get our total amount for the economic damages which is the starting point for the settlement. Let’s look at some economic damages a little closer.
Medical Expenses – Your settlement should include payment for ALL medical costs you incurred due to the accident. This means the ambulance ride, your treatment, follow up treatments, ongoing physical therapy, costs for transportation to these appointments, and any other medical costs related to these injuries until you reach maximum medical improvement.
Lost Wages – If you had to miss work due to your injuries, medical treatment or for any other reason related to the accident, then those costs will be reimbursed in your settlement package. This also includes any future lost wages as well. So if it’s going to take you a full year of recovery before you can get back to work, the at fault party will be liable for covering all of those lost wages until the time you are back to work.
Property Damages – Lets say your vehicle was totaled, your laptop was destroyed, your phone was broken and your golf clubs in the back were also destroyed. All of these count as legitimate property damages and you can recover the replacement costs for those items in your settlement.
Non-economic damages are the losses you had from the accident that do not have a specific price tag on them. These include pain and suffering, disfigurement, loss of quality of life, impaired mobility, loss of companionship, mental anguish and more. Since these don’t have a specific price tag, there is typically some negotiating back and forth on what each of the items are worth to each party. The more severe the injuries, pain and recovery is, the more you can expect to receive in compensation. Life long injuries will be compensated the most, especially if they majorly affect your ability to do normal activities. These are combined along with your economic damages to get the full settlement amount. In some very rare cases, punitive damages may be awarded on top of that which we will discuss next.
Pain And Suffering – Whatever pain and discomfort you have to go through from the moment of the accident all the way up until you have completely recovered is considered pain and suffering in personal injury claims. Since this does not have a price tag, your lawyer will use your records of discomfort along with testimony from others to determine value.
Loss Of Quality Of Life – If your injuries prevent you from doing activities you once enjoyed, such as hiking or exercising, this is considered a major loss. Injuries that affect long-term lifestyle will significantly impact your compensation.
Punitive damages are awarded when the negligent party acted with willful or reckless misconduct. In these cases, the judge may add additional damages as a form of punishment beyond standard compensation.
One of the biggest factors that affects your non-economic damages is how much the injuries impact your life in both the short and long term. Permanent injuries or disabilities will result in higher compensation, while temporary injuries typically result in lower amounts.
If one party is fully at fault, they are responsible for paying the settlement. However, if both parties share fault, the compensation will be reduced by the percentage of fault assigned to you.
Calculating damages is not something most people deal with every day, but at Rector Stuzynski Law Firm, our attorneys handle these cases regularly. We build strong, evidence-based cases and manage the entire process so you can focus on recovery. Contact us today for a free consultation.
We provide clear, practical guidance on personal injury claims and the legal process so you can understand your options and move forward with confidence.
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