What Are Compensatory Damages?
In a personal injury case, the injured party is entitled to recover damages from the at-fault party. These damages are intended to cover the victim’s losses and make them “whole” again. The main category of damages available after an accident is compensatory damages.
Compensatory damages, as the name implies, compensate victims for the actual losses they suffered due to an accident. The at-fault party is responsible for paying for these damages. If the at-fault party has liability insurance coverage, then the claim might be settled out of court.
Continue reading to learn more about the two main types of compensatory damages and common ways to prove their value in a personal injury case.
Economic Damages Compensate for Financial Losses
After an accident, victims may suffer many types of financial losses. Compensatory damages that help victims recoup their financial losses are known as economic damages. Common examples of economic damages include:
Current Expenses
Current expenses typically include all the costs you have incurred because of the accident, which can include things like:
- Medical bills
- Property damage or vehicle repair bills
- Out-of-pocket expenses
- Travel expenses for medical treatments
- Cost of prescription or over-the-counter medications
You may have already paid some of these expenses, but bills that are currently due also count.
Future Expenses
Future expenses are those expenses that you will incur in the future because of the accident or your resulting injuries. Often, these future expenses are related to anticipated medical care needs. You might need the help of an expert witness who can testify about your anticipated needs and the associated cost of those needs.
Lost Income
Finally, lost income can make up a large portion of your economic damages. If your injury is severe, you might not be able to work for weeks or months after your accident. Some victims are never able to return to work after an accident.
Some examples of income lost after an accident include:
- Lost wages, tips, and overtime
- Lost benefits
- Diminished earning capacity for victims who can no longer perform the same type of work as before the accident or injury
Ensure you save any receipts, invoices, or other records related to any costs incurred due to your accident or injury. As discussed later, these documents could become vital evidence to support your claim for damages.
Non-Economic Damages Cover Personal or Intangible Losses
After an accident, a victim may suffer many types of losses that are not necessarily financial in nature.
Non-economic damages compensate victims for these more personal, intangible losses, which can include things like:
- Pain and suffering
- Emotional distress
- Loss of consortium
- Diminished quality of life
- Anxiety
- PTSD
- Depression
Putting a specific dollar figure on non-economic damages can be difficult, but these damages are often worth more than the economic damages in a claim. An experienced personal injury lawyer can help you put an appropriate value on your damages to ensure that you get all the compensation to which you are entitled.
For instance, imagine that you play golf with your friends every Saturday and have done so for years. After an accident, you are no longer able to play golf.
While it may not be a financial loss, a skilled personal injury attorney can help you show how your quality of life has been reduced because you are no longer able to participate in this activity.
Proving the Value of Compensatory Damages
In order to get compensation for your damages, you will need to provide evidence that shows the value of your losses.
There are many types of evidence that may be used, such as:
- Medical bills or receipts
- Car repair bills or estimates
- Expert testimony about your anticipated future medical care needs
- Statements from your doctor or healthcare provider
- Pain journals or “day in the life” journals
- Expert testimony about your employment outlook or your ability to earn wages
- Detailed records of the activities you can no longer enjoy after your injury
Proving the value of economic damages is relatively easy; demonstrating the value of non-economic damages can be much more difficult. Insurance companies will often try to downplay the extent of your injuries to minimize your claim’s value. The more evidence you have to support your claim, the more likely you will succeed.
Contact Our Birmingham Personal Injury Attorneys at Belt, Bruner & Barnett Personal Injury Lawyers for Help After an Accident
If you have been hurt in an accident in Birmingham, you should seek help from an experienced personal injury lawyer. Insurance companies work hard to protect their bottom line, and they will use every trick they have to minimize your claim. An experienced Birmingham personal injury attorney at Belt, Bruner & Barnett Personal Injury Lawyers can help you get a full and fair recovery.
We are located in Birmingham, Huntsville & Montgomery.
Belt, Bruner & Barnett Personal Injury Lawyers – Birmingham Office
880 Montclair Road, Ste 300,
Birmingham, AL 35213
(205) 973-6417
Belt, Bruner & Barnett Personal Injury Lawyers – Huntsville Office
116 Jefferson St. Suite 207
Huntsville, AL, 35801
(256) 781-9242
Or find us with our GeoCoordinates: 34.73050852442579, -86.5863926515444
Belt, Bruner & Barnett Personal Injury Lawyers – Montgomery Office
7 Clayton St, Suite 200,
Montgomery, AL 36104
(334) 518-6098
Or find us with our GeoCoordinates: 32.373594220209505, -86.3092041262694