When someone is involved in a car accident, the impact often goes beyond physical injuries. There may be financial losses, emotional trauma, and a long road to recovery.
Fortunately, victims can seek compensation to help rebuild their lives. Understanding the type of compensation available is crucial to filing a strong claim.
In this guide, we will discuss the two main types of compensation after a crash. Knowing these categories can help you understand what you may be entitled to as a car accident victim. Let’s break down the types of damages available and how they work.
- Economic Damages
Economic damages refer to the tangible financial losses that result from a car accident. You can calculate these damages more quickly because they involve actual expenses and losses you can document.
Types of Economic Damages
- Medical Expenses: According to NHTSA, there are over 6 million car accidents in the US annually, resulting in millions of dollars in medical bills such as hospital visits, surgery, medications, and rehabilitation costs. The victim can claim these kinds of medical expenses. Also, if the accident results in long-term injuries, the victim may include the cost of future medical care.
- Lost Wages: If you cannot work due to the physical or emotional effects of an accident, you can claim compensation for the wages you would have earned. It could also cover lost earning potential if your injuries result in long-term disabilities that affect your ability to work.
- Property Damage: It includes repairing or replacing your vehicle if the accident damaged it.
- Out-of-Pocket Costs: This could include transportation costs to medical appointments or any other expenses arising directly from the accident.
- Non-Economic Damages
Non-economic damages compensate for an accident’s emotional, psychological, and physical toll. Unlike economic damages, non-economic damages are more subjective and don’t come with clear, tangible evidence.
These damages aim to compensate victims for their pain, suffering, and loss of quality of life. It involves the “multiplier method” of calculation, where you multiply the total amount of economic damages by a number that reflects the severity of your pain and suffering.
Types of Non-Economic Damages
- Pain and Suffering: This refers to the physical pain caused by injuries and the emotional suffering experienced throughout the recovery process.
- Emotional Distress: Many accident victims experience anxiety, depression, or post-traumatic stress disorder (PTSD) following a crash.
- Loss of Enjoyment of Life: If the accident limits you from engaging in activities you once enjoyed, such as sports or hobbies, you may claim compensation for this loss.
- Loss of Consortium: This pertains to the loss of companionship and support from a spouse due to the accident and its impact on your relationship.
How to Maximize Damages in a Car Accident Claim
Here are a few tips if you want to maximize the damages you receive from a car accident claim:
- Seek medical attention, even if injuries seem minor or there are no injuries, as some accidents may cause internal injuries.
- Keep detailed records of medical bills, lost wages, and out-of-pocket costs.
- Consult with a personal injury lawyer to understand your rights and calculate damages.
- Avoid settling too quickly; consult with your lawyer before accepting any offer.
- Ensure that you fully account for both economic and non-economic damages in your claim.
Conclusion
Car accident claims offer two types of compensation: economic and non-economic damages. Economic damages cover financial losses such as medical bills, lost wages, and property damage, while non-economic damages compensate for pain and suffering and emotional distress.
By understanding both types of damages and how to calculate them, you can ensure that you receive the compensation you deserve. Seeking immediate medical care, keeping detailed records, and consulting a lawyer are important steps to maximize your damages and secure a fair settlement.
