What are economic and non-economic damages?

On Behalf of | Aug 21, 2025 | Personal Injury |

Car accidents can lead to serious losses. A victim of a car accident could suffer traumatic injuries that require them to seek medical care, leading to hospital stays, surgeries and long-term care. A victim’s car could also be damaged after a car accident, causing the victim to face expensive repairs or replacement costs. A victim could also lose income while recovering from their injuries or even lose their employment after suffering debilitating disabilities. 

These are all just a few examples of what can happen to someone after a car accident. With a successful car accident claim, a victim could recover compensation for their losses, including economic and non-economic damages. Here is what you should know:

Compensation for tangible losses

Economic damages are tangible losses caused by a car accident. These types of damages can be identified with bills, income statements and monetary losses. Some common types of economic damages include:

  • Medical bills: Expenses for hospital stays, medication, surgeries, rehabilitation, medical equipment and long-term medical care.
  • Property damage: Vehicle and electronic repair or replacement costs.
  • Lost income: Income lost while recovering from injuries and future income loss.
  • Funeral expenses: Burial, cremation and funeral service costs.

Victims of car accidents may be able to recover compensation for any economic damages they have suffered with a successful car accident claim.

Compensation for intangible losses

Non-economic damages are often much harder to identify since they are considered intangible, which means the severity of the loss is subjective. Some of the most common types of non-economic damage include mental anguish, loss of companionship and pain and suffering. Placing a value on non-economic damages can be difficult, so the amount of compensation someone could receive is typically based on the impact an intangible loss has on a victim. 

Professional legal guidance can help victims understand their compensation options.

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