Suffering an injury due to someone else’s carelessness or negligence can leave you eligible to claim compensation for your losses. While medical bills and lost wages offer precise financial figures, other losses like pain and suffering require subjective evaluation. Grasping the difference between economic and non-economic damages empowers you to pursue the full and fair compensation you deserve.
What Are Economic Damages?
Economic damages are compensation for the tangible, monetary losses you incur due to an injury. These are the out-of-pocket expenses and financial setbacks directly attributable to the accident. Economic damages compensate for losses resulting from:
- Medical Expenses – You can recover compensation for all reasonable and necessary costs associated with treating your injuries, including hospital bills, doctor visits, surgeries, medications, physical therapy, and any ongoing care you may need.
- Lost Wages – If your injuries keep you out of work, you can recover the income you lose as a result. This includes pecuniary losses such as salary, hourly pay, bonuses, commissions, and other employment benefits.
- Loss of Earning Capacity – If your injuries prevent you from returning to your previous job or earning at the same level as before, you can seek compensation. This also includes future losses such as diminished earning potential and lost earnings over your lifetime that is considered a financial loss.
- Property Damage – An accident that damages your vehicle or other personal property allows you to recover either the cost of repairs or the fair market value of the lost property.
Economic damages are typically easier to calculate and prove than non-economic damages, as they come with receipts, bills, pay stubs, and other documentation. Your personal injury attorney can assist you in gathering and presenting evidence of your economic losses to build a strong case for compensation.
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What Are Non-Economic Damages?
Non-economic damages are compensation for the intangible, non-monetary losses you suffer due to an injury. These are the subjective, hard-to-quantify ways the accident impacts your quality of life. Non-economic damages provide compensation for:
- Pain and Suffering – Pain and suffering are the physical pain and discomfort, emotional distress, and mental anguish you experience as a result of your injuries. Examples include chronic pain, anxiety, depression, PTSD, and other conditions.
- Scarring and Disfigurement – If your injuries leave you with permanent scars, burns, amputations, or other disfiguring conditions, you can recover compensation for the emotional toll and social effects of living with visible reminders of the accident.
- Loss of Quality and Enjoyment of Life – When injuries take away your ability to participate in hobbies and other activities you enjoyed before the accident, you can pursue compensation for the diminishment of your quality of life.
- Loss of Consortium – This refers to the loss of companionship, affection, and support suffered by your spouse or family members due to your injury. It recognizes your injury’s impact on your closest relationship and the emotional toll it takes on your spouse.
To calculate non-economic damages, insurance companies and juries frequently apply formulas that multiply your economic damages by a factor between 1.5 and 5, depending on the seriousness of your injuries. For example, if you have $50,000 in medical bills and lost wages, the potential range for your non-economic damages could be $75,000 to $250,000.
As a general rule, Tennessee caps non-economic damages at $750,000 in most cases but $1,000,000 in instances of catastrophic injuries.
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Punitive Damages in Personal Injury Cases
As an additional layer of compensation, courts occasionally award additional punitive damages. Their purpose is to punish defendants for particularly outrageous or reckless behavior, setting an example to deter future wrongdoing.
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How to Calculate Economic and Non-Economic Damages
Properly valuing your personal injury claim is key to getting the full compensation you deserve. To calculate your economic damages, start by gathering all relevant documentation, such as:
For non-economic damages, keep a journal documenting how your injuries impact your daily life, relationships, and emotional well-being. You may also undergo an independent medical exam or psychological evaluation to assess the extent of your pain and suffering.
Ultimately, the best way to ensure you receive fair compensation for economic and non-economic damages is to work with a skilled personal injury lawyer. An experienced attorney can accurately value your claim, gather compelling evidence, and negotiate aggressively with the insurance company on your behalf.
Contact Gatti, Keltner, Bienvenu & Montesi Following an Accident
At Gatti, Keltner, Bienvenu & Montesi, we understand that no amount of money can erase the trauma of a severe injury. But our Memphis car accident lawyers also know that securing full and fair compensation can provide vital support and stability as you rebuild your life. Our experienced legal team is here to guide you through the process and fight fiercely for the damages you deserve.
Call (901) 526-2126 or contact us online today for a free case evaluation. We’ll review your claim, explain your legal options, and work tirelessly to maximize your recovery. You pay no fees unless we win for you, so there’s no risk in reaching out in the long term. Let us put our knowledge, resources, and dedication to work for you.
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July 15, 2025
