Economic vs. Non-Economic Damages: What Are You Being Compensated For?

When you file a personal injury claim after a car accident, the ultimate goal is to receive a settlement that compensates you for your losses. But what does that actually include? The legal term for all of your collective losses is “damages.”

Understanding your damages is the key to understanding the value of your case. In Washington State, and in personal injury law generally, damages are broken down into two distinct categories: Economic Damages and Non-Economic Damages.

Think of it this way: Economic damages pay you back for the money you have lost or will lose. Non-economic damages compensate you for the human cost and the impact the accident has had on your life. A full and fair settlement must account for both.

Useful Information for You: In a Nutshell

• Damages are Your Losses: The term “damages” refers to the total of all your losses resulting from the accident.
• Economic Damages are Measurable Financial Losses: This includes all of your medical bills, lost wages, and other out-of-pocket expenses. They are the black-and-white numbers.
• Non-Economic Damages are Intangible, Human Losses: This is compensation for your physical pain, emotional distress, and the overall negative impact the injury has had on your life.
• Both are Critically Important: A fair settlement must include full compensation for both categories of damages.
• Proving Each Type Requires Different Evidence: Economic damages are proven with bills and receipts, while non-economic damages are proven with medical records, journals, and testimony.

Economic Damages: The Black and White Numbers

Economic damages are the foundation of your claim because they are tangible and can be calculated with precision. They are designed to reimburse you for every dollar you have lost or will have to spend due to the accident.

Your claim for economic damages will include:

• All Past and Future Medical Expenses: This is the total cost of every ambulance ride, ER visit, hospital stay, surgery, doctor’s appointment, physical therapy session, chiropractic adjustment, and prescription medication. It also includes the projected cost of any medical care you will need in the future.
• All Past and Future Lost Wages: This is the income you lost while unable to work during your recovery. If your injuries result in a permanent disability, this will also include a claim for “loss of future earning capacity,” which calculates the income you will lose over your entire career.
• Property Damage: The cost to repair or replace your vehicle.
• Other Out-of-Pocket Expenses: This can include costs like rental cars, transportation to doctor’s appointments, or hiring help for household chores you can no longer perform.

These damages are proven with invoices, bills, pay stubs, and expert financial reports.

Non-Economic Damages: The Human Cost of the Crash

This category is more complex because it attempts to place a monetary value on the non-financial ways the accident has harmed you. These damages are real, they are significant, and you have every right to be compensated for them. This is where an experienced attorney can make the biggest difference in your case.

Your claim for non-economic damages includes:

• Pain and Suffering: Compensation for the physical pain, discomfort, and general suffering you have endured and may continue to endure.
• Emotional Distress: Compensation for the mental anguish of the accident, including fear, anxiety, depression, insomnia, and conditions like PTSD.
• Loss of Enjoyment of Life: This compensates you for the inability to participate in hobbies, activities, and life experiences that brought you joy before the accident.
• Disability and Disfigurement: Compensation for a permanent physical disability or a permanent scar that alters your appearance.
• Loss of Consortium: A claim made by your spouse for the negative impact the injuries have had on your marital relationship.

Because there is no invoice for pain, proving these damages relies on medical records that document the severity of your injuries, your own testimony about how your life has changed, and statements from family and friends.

A fair settlement is one that fully accounts for every line item in both of these categories. Insurance companies will always try to downplay or ignore the non-economic damages. If you’ve been injured in an accident in the Tacoma area, search the Car Accident Lawyer Directory Tacoma. Compare profiles and find a trusted local attorney who knows how to meticulously document and fight for the full value of both your economic and non-economic losses.

References

• Washington Pattern Jury Instructions (WPI 30.01.01) – Measure of Economic and Noneconomic Damages:The official instruction for juries in Washington that legally defines and separates economic and non-economic damages for the purpose of awarding compensation.

  https://www.courts.wa.gov/superiori/pattern_jury_instructions/WPI%2030.01.01%20Measure%20of%20Economic%20and%20Noneconomic%20Damages%20-%20Personal%20Injury%20-%20Adult.pdf

• NOLO – “What are ‘Damages’ in a Personal Injury Case?”:A reputable legal resource for consumers that provides a clear explanation of the different types of damages that can be recovered in a settlement.

  https://www.nolo.com/legal-encyclopedia/what-are-damages-in-a-personal-injury-case.html