
If you’ve been injured in an accident, you may be facing unexpected expenses and financial hardships. In a personal injury case, economic damages are designed to cover your financial losses caused by the accident. These damages help you recover costs like medical bills, lost wages, and other out-of-pocket expenses.
Economic damages are one aspect of compensatory damages. This is the money paid by someone who is negligent or otherwise liable for the damages they cause to another person. These damages also include non-economic damages. These are losses you experience with no intrinsic financial value, like pain and suffering.
Economic damages ensure you can pay for necessary medical care or support your family if you’re unable to work. In cases of severe or permanent injuries, the financial impact of an accident can last for years or even a lifetime. That’s why it’s important to work with an experienced personal injury lawyer who can help you seek the full amount you deserve.
Understanding what economic damages are can help you ensure you receive fair compensation.
What Are Economic Damages?
Economic damages refer to the tangible financial losses you suffer after an accident. These damages cover costs that can be proven with bills, receipts, and financial records. Unlike non-economic damages, which cover pain and suffering, economic damages have a clear dollar.
Medical Expenses
Medical costs often make up the largest portion of economic damages in a personal injury case.
After an accident, you may face a wide range of medical expenses, including:
- Doctor’s appointments
- Emergency room visits
- Hospital stays
- Surgeries and medical procedures
- Prescription medications
- Ambulance transportation
- Medical devices, such as crutches or wheelchairs
You are entitled to reimbursement for all of these medical costs resulting from your accident. If your injury requires ongoing treatment, you can also seek compensation for future medical expenses. It’s important to keep detailed records of all medical-related costs to ensure you receive full compensation.
Therapy And Rehabilitation Costs
Many injuries require therapy and rehab to restore function and improve quality of life.
These costs can add up quickly and may include the following:
- Physical therapy: Helps restore mobility, strength, and flexibility after an injury.
- Occupational therapy: Aids in regaining the ability to perform daily tasks and job-related functions.
- Psychological counseling: Provides support for emotional and mental health challenges resulting from the accident.
These services help injury victims regain independence and return to their normal lives.
Lost Wages
If your injuries prevent you from working, you may be entitled to compensation for lost wages. This includes income you have already missed due to medical treatments and recovery time.
Lost wages can cover the following:
- Hourly wages or salary
- Overtime pay
- Bonuses and commissions
- Paid time off (PTO) used for injury-related reasons
Your employer can provide records showing how much work you missed. Pay stubs and tax returns help document your financial losses. Your attorney can help you document any missed earnings.
Reduced Earning Capacity
In some cases, an injury may prevent you from returning to your previous job or working in the same capacity as before. You may need to change careers or miss out on opportunities for promotions and raises. You may be unable to work full-time.
If your ability to earn a living has been permanently affected, you can seek compensation for reduced earning capacity.
This type of damage considers:
- Your past income levels
- Your education and skill set
- The severity of your injury
- Your ability to perform other types of work
- Your age and life expectancy
Calculating reduced earning capacity often requires expert testimony. Financial and vocational specialists can estimate potential future losses.
Property Damage
If your personal property was damaged in the accident, you can seek compensation for repairs or replacement.
This commonly includes:
- Vehicle repair or replacement costs after a car accident or other motor vehicle accident
- Diminished value of your vehicle after repair, or the difference between the value before and after the accident
- Damage to personal belongings, such as electronics, clothing, or other items
- Replacement of items essential to your daily life, such as a wheelchair or assistive devices
It’s important to get repair estimates and receipts to support your claim for property damage.
Out-of-Pocket Costs
Personal injury victims often face additional expenses that go beyond medical bills and lost wages.
Out-of-pocket costs include necessary and reasonable expenses related to your injury, such as:
- Home modifications: Installing wheelchair ramps, handrails, or other accessibility features.
- Vehicle modifications: Adapting your vehicle with lifts or special controls to accommodate mobility impairments.
- Transportation: Travel expenses for doctor’s visits, therapy sessions, or specialists located far from home.
- Childcare services: Assistance with caring for your children while you attend medical appointments or recover from your injuries.
- Housekeeping services: Assistance with laundry, meal preparation, and other tasks around the house while you recover.
To recover these costs, they must be shown to be reasonable and necessary, meaning they were directly caused by your injury and are not excessive.
How Are Economic Damages Calculated?
Economic damages are calculated using proof of expenses and financial documentation, such as:
- Medical bills and receipts.
- Pay stubs and tax returns.
- Repair estimates for property damage.
- Expert testimony to project future costs.
When calculating damages, factors like inflation and long-term care needs may also be considered. In some cases, financial experts are hired to determine the total future impact of the injury on your finances.
To ensure you recover the fair value of your damages, make sure you save all receipts and keep track of any expenses related to your accident. Maintain records of work absences, salary details, and any changes in job responsibilities due to your injury. Be sure to track out-of-pocket costs and any travel-related expenses, such as mileage to and from doctor’s appointments and necessary hotel stays.
Your personal injury lawyer will help gather and present this evidence to ensure you receive fair compensation.
A Personal Injury Lawyer Can Help if The Insurance Company Challenges Your Claim for Economic Damages
Insurance companies often try to minimize payouts by questioning the necessity of medical treatments and out-of-pocket costs or arguing that injuries are not as severe as claimed. They may also attempt to reduce compensation by suggesting that your injuries were pre-existing or unrelated to the accident.
If your claim is challenged, having an experienced attorney by your side can make a significant difference. Your lawyer will negotiate with the insurance company and, if necessary, take your case to court to fight for your rights.
If you or a loved one has been injured, don’t wait to take action. Schedule a free consultation with Jeffcoat Injury and Car Accident Lawyers at (803) 573-0869 to discuss your case and how an attorney can help you recover the compensation you deserve.