Updated: May 15, 2025
If you’ve ever been in a car accident — or know someone who has — you’ve likely heard about compensation claims. But when attorneys or insurance adjusters start using terms like “economic damages,” it’s easy to feel lost in the legal jargon. Let’s break it down.
In personal injury law, economic damages (also known as special damages) refer to the tangible, measurable financial losses a person suffers as a direct result of an accident. These are different from non-economic damages, like pain and suffering or emotional distress, which are harder to quantify.
So why do economic damages matter? Because they form the foundation of your personal injury claim — and can significantly impact the compensation you receive after a car accident.
Economic damages represent the actual, out-of-pocket expenses you incur due to your injuries. These can be calculated using receipts, medical bills, pay stubs, repair estimates, and other documentation. If someone else’s negligence caused your accident, you shouldn’t have to pay for these expenses alone.
Medical costs can add up quickly, especially after a serious crash. These may include:
💡 Pro Tip: Always keep copies of your medical bills and treatment records. They’re essential in proving the extent of your injuries and your financial losses.
If your vehicle or belongings were damaged or destroyed in the accident, you may be entitled to reimbursement for:
Even minor accidents can result in hundreds — if not thousands — of dollars in property damage.
If your injuries prevent you from going to work, your lost income is considered an economic damage. This may include:
Even temporary injuries can significantly impact your financial well-being, especially in high-cost areas like the Bay Area.
In more serious accidents, you may suffer long-term or permanent injuries that affect your ability to earn a living in the future. This is referred to as lost earning capacity. The difference?
Calculating lost earning capacity often requires expert testimony or input from financial specialists — another reason to work with an experienced car accident attorney.
Don’t overlook the smaller expenses related to your accident. These can include:
While these may seem minor individually, they can add up quickly and should be included in your total damages.
Underestimating your economic damages can lead to a low settlement — leaving you responsible for future costs out of your own pocket.
Many accident victims accept early offers from insurance companies without fully understanding the extent of their damages. Sadly, once a settlement is accepted, you can’t go back for more — even if new injuries appear or additional treatment is needed.
That’s why it’s essential to speak with a knowledgeable personal injury attorney before signing anything.
To recover these damages, your legal team will collect documentation such as:
The stronger your documentation, the better your chances of receiving full compensation.
Let’s say Maria, a Bay Area resident, is hit by a distracted driver in Oakland. She suffers a broken leg, needs surgery, and misses two months of work.
Her economic damages may include:
Without a proper claim, she might only get a fraction of that from the insurance company. With a knowledgeable attorney, she can pursue the full amount — and even include non-economic damages (like pain and suffering) for a more comprehensive settlement.
To recover full economic damages, you need to:
✔️ Save all medical bills and receipts
✔️ Track missed workdays and lost income
✔️ Get car repair estimates and documentation
✔️ Keep a journal of your recovery process
✔️ Consult a personal injury attorney early
A recovery journal helps track:
This journal can support both economic and non-economic claims — and shows the full impact of the accident on your daily life.
If you’re dealing with a car accident claim, especially one involving significant injuries or time off work, don’t go it alone.
An experienced personal injury attorney can:
Economic damages are the backbone of your personal injury case. By understanding what they are — and how they’re calculated — you empower yourself to pursue what you’re truly owed.
At Mercado & Sacramento, PC, we fight to ensure that every dollar you lost due to someone else’s negligence is accounted for. We know how to document, present, and negotiate your claim — and we’re not afraid to stand up to insurance companies.
If you or someone you love has been injured in a car accident, don’t wait. Call us now at (510) 340-4LAW for a free consultation. Let’s talk about your case, your damages, and your options.
Need help calculating your economic damages? Let our experienced attorneys guide you through every step.
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