Economic Vs. Noneconomic Damages After a Car Accident

Being involved in a car accident in Denver can change your life in more ways than one. To help you recover from an automobile accident, you can file an insurance claim or personal injury lawsuit against the at-fault party in pursuit of financial compensation, also known as damages. The two main types available are economic and noneconomic.

What Are Economic Damages? 

You have the right to seek financial compensation for a variety of losses you suffered in a car accident in Colorado. Colorado is a fault-based state, meaning you can seek this compensation from the insurance provider of the at-fault driver or party if you can prove fault. 

Economic damages refer to financial compensation awarded for the monetary losses suffered by a car accident victim. Any past, current and future foreseeable financial losses caused by the automobile accident can be included in an economic damage award. 

The following are common examples:

• Medical costs, including hospital stays, surgeries, specialists, medications, medical devices, therapies, rehabilitation and disability accommodations.
• Lost wages, referring to income lost while recovering from temporary injuries or lost future capacity to earn due to a long-term or permanent injury.
• Property damage costs, such as the price to repair a damaged vehicle or the full pre-crash value of a car that is deemed a total loss (“totaled”).
• Reasonable funeral and burial expenses, lost wages and inheritance, and lost value of household services if a loved one died in a fatal motor vehicle accident. Note that if someone you love passed from an accident, contact our wrongful death lawyers in Denver.

An at-fault party may be required to repay any out-of-pocket expenses incurred by the car accident victim up to the limits on the insurance policy. Proof of these losses is generally required, such as medical billing paperwork, wage documentation, receipts for out-of-pocket expenses and vehicle repair estimates.

What Are Noneconomic Damages?

Noneconomic damages are all of the losses suffered by a car accident victim that are not monetary in nature. They are also referred to as intangible or general losses, as well as “pain and suffering.” Noneconomic damages claimed in a car accident case may include: 

• Physical pain and suffering 
• Chronic pain 
• Inconvenience
• Emotional distress 
• Mental anguish 
• Psychological harm or trauma 
• Post-traumatic stress disorder 
• Loss of consortium 
• Loss of enjoyment of life 
• Lost quality of life 
• Scarring or disfigurement 
• Grief or mourning

Essentially, all the ways that a serious car accident has impacted your daily life can be included in a noneconomic damage claim. The value of a noneconomic award is based on injury severity and how much it has impacted the victim’s life, rather than bills and receipts.

Maximize Your Financial Recovery With Help From a Car Accident Attorney

A car insurance company will put itself and the protection of its profits above your recovery during a car accident claim. The best way to ensure that your legal rights are protected – and to pursue the financial recovery that you deserve – is by hiring an experienced Denver car accident lawyer to represent you during settlement negotiations.

An attorney will know tactics to maximize the amount given to you in both economic and noneconomic damages. You can count on your lawyer to fight for the best possible settlement or judgment award for your claim while you focus on what’s most important: healing and moving forward.

If you’re curious about the potential value of your car accident case in Denver, contact the attorneys at Fang Accident Lawyers for a free evaluation.