If you’re recovering from an injury caused by someone else’s mistake, you’ve probably heard the term damages. But what are economic damages exactly, and how do they affect your personal injury claim?
In this post, we will provide a definition, explain why they matter, and show how they’re calculated in a California personal injury case.
What Are Economic Damages in a Personal Injury Case?
Economic damages are the actual, measurable financial losses that result from an accident or injury. These are the out-of-pocket costs you can put a price tag on. If you’ve had to pay for a hospital stay, missed a paycheck, or need future medical care, those are all considered economic damages.
Think of them as the “hard costs” of your injury—the money you’ve lost (or will lose) because of what happened.
Some common examples include:
- Medical bills (hospital visits, surgeries, prescriptions, rehab);
- Lost wages (from missing work);
- Loss of future income (if your injury affects your long-term ability to work);
- Property damage (like your car in a crash);
- In-home care or mobility equipment; and
- Travel expenses for treatment.
If it comes with a receipt, invoice, or a line item on your bank statement, it’s likely part of your economic damages personal injury claim.
Why Economic Damages Matter in Your Case
When you’re injured, the last thing you want to do is fight with insurance companies or sift through legal jargon. In California, economic damages are part of the total compensation package you may be entitled to. A personal injury claim aims to make you “whole” again, financially speaking. That includes compensation for everything you’ve lost because of the injury, and economic damages are a big piece of that.
Even though they’re more straightforward than pain and suffering, economic damages still require proof. You need documentation, clarity, and a solid understanding of what you’ve lost. That’s where working with a law firm that knows what they’re doing (and knows your local courts) helps.
How Are Economic Damages Calculated?
There’s no one-size-fits-all formula, but here’s a general idea of what makes up your economic damages calculations.
1. Medical Expenses
Medical expenses include everything from ER visits to physical therapy to future surgeries. Your lawyer will collect bills, statements, and expert opinions to show the full scope of your care needs.
2. Lost Wages
If your injury kept you from working, we’ll calculate your missed pay, including hourly wages, salary, tips, or self-employment income.
3. Loss of Earning Capacity
If you can’t return to your job (or have to switch to lower-paying work), we’ll work with vocational experts and economic analysts to estimate what you would have earned over your lifetime.
4. Property Damage
If your vehicle or personal belongings sustained damage in the incident, repair or replacement costs are part of your economic damages.
5. Out-of-Pocket Expenses
Travel to appointments, medical devices, home modifications—all these little costs add up, and they deserve to be part of your claim.
The more detailed the documentation you can provide to demonstrate these costs, the stronger your claim. That’s one reason we recommend keeping a daily log of your expenses and saving every receipt.
Economic vs. Noneconomic Damages
People often ask, What’s the difference between economic and noneconomic damages?
While economic damages are measurable financial losses, noneconomic damages cover things like:
- Pain and suffering,
- Emotional distress,
- Loss of enjoyment of life, and
- Loss of consortium (impact on relationships).
In short, economic damages are tangible losses, while noneconomic damages are intangible. That means they are more subjective and complex to calculate because there is no exact financial loss.
Will the Insurance Company Pay for Economic Damages?
They should, but that doesn’t mean they’ll offer a fair amount upfront. Insurance companies are in the business of minimizing payouts. Even when the numbers are clear, adjusters may downplay your future medical needs or argue that some costs weren’t related to the accident.
That’s where our team steps in. At Wells Call Injury Lawyers, we build strong cases with solid evidence. We work with doctors, economists, and other professionals to calculate your losses, and we don’t back down when insurers try to lowball you.
How Long Do I Have to File for Economic Damages?
In California, you typically have two years from the date of the injury to file a personal injury claim. But there are exceptions, especially if a government agency is involved. It’s wise to speak with a lawyer as soon as possible. Waiting too long can mean missing your chance to recover compensation entirely.
What If I’m Partially at Fault?
California follows a pure comparative negligence rule, meaning you can still recover compensation even if you’re partly responsible for the accident. Your damage award will be reduced by your percentage of fault, however. So, if you were found 20% at fault in a case with $50,000 in damages, you could still recover $40,000.
The key is ensuring the fault is assessed fairly and not exaggerated by the other side to minimize your payout.
Why Choose Wells Call Injury Lawyers
You shouldn’t have to dig through insurance forms or argue with adjusters while trying to recover from an injury. That’s our job.
At Wells Call Injury Lawyers, we’re not an out-of-state firm with a call center in another city. We have real offices in our community. When you call, you get a real person—someone who knows the area and cares about getting you actual results.
Since 1984, we’ve recovered over half a billion dollars for our clients. And we do it correctly: no gimmicks, no games—just straight talk and serious advocacy.
If you’re wondering what economic damages are in your specific case—or if you just want someone to walk you through your options—we’re ready when you are. Call Wells Call Injury Lawyers today for a free, no-pressure consultation. We’ll answer your questions, explain the process, and let you decide what’s next.