After an accident, you might face more than just pain. Victims can also lose money because of medical bills, missed work, or damage to their property. These money-related losses are called economic damages. They represent the real, measurable costs that come from your injury.
In California, you have the right to be repaid for these financial losses if someone else’s carelessness caused your injury. Knowing what counts as economic damages and how they are calculated can help you get the full amount you deserve.
What Are Economic Damages?
Economic damages are the financial costs caused by an accident. They’re meant to make you “whole” again by paying you back for money you had to spend or income you lost.
Some common examples of economic damages include:
- Medical expenses: Hospital bills, surgeries, doctor visits, medications, and physical therapy
- Lost wages: Income you couldn’t earn while recovering from your injuries
- Loss of earning ability: When your injuries affect your ability to work or earn the same income in the future
- Property damage: Repairs or replacement for your car or other belongings
- Out-of-pocket expenses: Costs for travel to doctor appointments, home care, or medical equipment
These losses can be proven with receipts, pay stubs, or other records that show how much money the injury has cost you.
How Are Economic Damages Calculated?
Economic damages are added up using clear, documented proof.
Insurance companies, lawyers, and courts rely on things like:
- Bills and receipts from hospitals and clinics
- Employment records that show missed work
- Pay stubs and tax returns to prove income
- Expert opinions about your future medical needs or loss of earning potential
For example, if your injuries keep you from going back to your old job, experts can calculate how much money you’ll lose over time. The goal is to make sure you’re paid for everything you’ve lost presently and in the future.
Economic vs. Non-Economic Damages
Economic damages are different from non-economic damages, which are harder to measure in dollars. These damages include things you can prove with bills or receipts, like lost wages and medical costs.
Non-economic damages include things like pain, emotional distress, and loss of enjoyment of life.
In most cases, economic damages are easier to calculate because they rely on financial documents and specific numbers.
Proving Economic Damages in California
To get compensation for economic losses, you must show proof that your expenses were caused by the car accident. The stronger your evidence, the better your chances of recovery.
Helpful forms of proof include:
- Medical records that show your injuries and treatments
- Receipts for doctor visits, medications, and repairs
- Letters from your employer confirming your time off work
- Expert reports that explain how your injuries affect your future income
Even small costs, like parking fees for doctor visits, can add up and should be included in your claim.
Common Types of Economic Damages
The exact damages you can recover depend on how serious your injury is.
Some of the most common examples include:
- Emergency medical care: Ambulance rides, emergency room treatment, and hospital stays
- Ongoing medical care: Follow-up appointments, physical therapy, and rehabilitation
- Lost income: Paychecks or business income you missed while healing
- Future income loss: Reduced earning power or permanent disability that affects your career
- Property damage: Repair or replacement costs for your vehicle or other damaged property
- Daily living costs: Expenses like childcare or help with household chores while you recover
Keeping track of all these expenses will help your lawyer calculate the full amount of your claim.
Future Economic Losses
Some losses continue long after an accident. These are called future economic damages. They may include ongoing medical treatment, physical therapy, or a long-term loss of earning ability.
Experts like doctors and economists often help estimate these future costs, who look at:
- How long you’ll need medical care
- Whether you can return to your old job
- Inflation and cost-of-living increases
- How your injuries affect your long-term earning power
For example, if a construction worker can’t lift heavy objects anymore, they might lose future income. Those losses can be included in the claim.
Economic Damages Under California Law
California law separates economic damages from non-economic ones under Civil Code §1431.2. This helps make sure each type of loss is fairly valued.
California also follows a pure comparative negligence rule. If you were partly at fault for your
accident, your damages are reduced by your percentage of fault.
For instance, if you were 20% responsible and your total losses were $100,000, you could still recover $80,000.
Why You Need a Lawyer
Calculating economic damages takes time and skill.
A personal injury lawyer can help by:
- Gathering and organizing your financial records
- Consulting with experts to estimate future costs
- Negotiating with the insurance company for fair compensation
- Presenting strong evidence if your case goes to court
Insurance companies may try to reduce your claim or argue that certain expenses aren’t related to the accident. Having an attorney ensures your full losses are recognized and properly documented.
Contact the San Bernardino Personal Injury Attorneys at Kenny Ramirez Law Firm Personal Injury Lawyers for Help Today
Economic damages are the foundation of most personal injury claims. They cover everything
from your medical bills to your lost income and future financial losses.
If you’ve been injured in San Bernardino, Kenny Ramirez Law Firm Personal Injury Lawyers can help you understand how these damages work and can help you recover what you’ve lost. Contact us today for a free consultation with a San Bernardino personal injury attorney.
Visit Our Personal Injury Law Office in San Bernardino, CA
Kenny Ramirez Law Firm Personal Injury Lawyers
325 W Hospitality Ln Suite 204, San Bernardino, CA 92408
(909) 515-0646