Personal Accident Claim

The Different Types of Economic Losses an Accident Victim Can Claim

An accident can impact the victim’s life in many different ways. It can affect the victim physically, emotionally, and financially. These consequences of an accident make the life of the victim unpleasant.

Luckily, victims have the option of claiming compensation for the losses they incur by filing a personal injury claim. The settlement the victim will receive if they win the case will include all their losses, even the non-economic ones.

However, winning a personal injury claim is not as simple as it sounds. It has many complications. Learning about personal injury law can certainly help. You can do that by visiting credible law websites like

Remember, learning about personal injury law doesn’t make you a lawyer. You must seek the help of a lawyer when filing a personal injury claim. Learning about personal injury law can help you avoid mistakes.

In a personal injury claim, you can claim three types of damages:

  • Economic damages
  • Non-economic damages
  • Punitive damages

The first two types, also known as compensatory damages, intend to compensate the victim’s losses. The other type of damage is issued to punish the defendant for their negligence.

What Are Economic Damages?

Economic Damages

Economic losses are the financial losses the victim will sustain as a result of the accident. These losses include:

  • Medical expenses
  • Property repair costs
  • Lost income
  • Loss of earning capacity
  • Funeral expenses

Medical Expenses

Accident victims are bound to incur medical expenses. It is natural to sustain injuries as a result of the accident. It is necessary to treat these injuries. Treating these injuries can help the victim get better and build a good case.

These are the most common forms of loss that almost all victims incur. You can calculate the medical expenses by adding all the bills you incur. This is why it is important to document your medical bills.

Property Repair Cost

Property damages are common in accidents, especially auto accidents. Repairing your property is crucial to understanding the extent of your losses. Your car could be damaged as a result of the accident. You will need your car to carry on with your daily activities. So repairing the car is a must.

The expense you incur to repair your car can be claimed as a property repair cost.

Lost Income

When the injuries are severe, the victim will have to take a bed rest. It means they can’t go to work until they fully recover. During this period, the victim will lose their daily wage, which they would have gotten if they weren’t injured.

You can calculate lost wages by multiplying the number of days you missed work by your daily wage.

Loss of Earning Capacity

Loss of Earning Capacity

Some accidents can cause permanent disabilities for the victims. Victims may not go to work, especially if their job is physically demanding. This can impact a victim’s life to a great extent. The consequences of losing your earning capacity will be worse if you are the sole breadwinner of your family.

You can claim compensation for a loss of earning capacity. The compensation will cover the money you would have earned until your retirement.

Funeral Expenses

The worst outcome of any accident is death. Accidental deaths are the 4th most common cause of death in the US. A death caused by an accident can cause financial losses along with emotional pain.

The family members of the victim are allowed to claim compensation for both financial and non-financial losses they incur due to the sudden death. The funeral expenses will be covered by the defendant.

Insurance Coverage

In many cases involving accidents and personal injury claims, insurance companies play a pivotal role in compensating victims. It’s important to understand how insurance claims work, as it can significantly impact the outcome of a claim. There are typically two main types of insurance involved: the victim’s insurance and the at-fault party’s insurance.

The victim’s insurance, often referred to as “first-party insurance,” includes coverages such as health insurance and, in some cases, personal injury protection (PIP) or medical payments coverage.

These policies can help cover immediate medical expenses and treatment for injuries sustained in the accident. Understanding the extent of your coverage and how to utilize it is crucial for accessing necessary medical care promptly.

Legal Timeframes

Legal Timeframes for Personal Injury Claim

Another essential aspect often overlooked by accident victims is the legal timeframes and statutes of limitations associated with personal injury claims. These time limits can vary depending on the jurisdiction and the type of accident. Failing to file a claim within the specified timeframe can result in the loss of your right to seek compensation.

Understanding these time constraints is critical to ensure timely action. It’s advisable to consult with a personal injury attorney who is well-versed in the specific laws of your jurisdiction. They can provide guidance on the applicable statute of limitations and help you initiate the legal process promptly.

Non-Economic Damages

While the text mentions non-economic damages briefly, it’s essential to delve deeper into this category of losses. Non-economic damages encompass intangible losses such as pain and suffering, emotional distress, and loss of enjoyment of life. These losses are often just as impactful as economic damages, if not more so, as they affect the victim’s overall well-being and quality of life.

Calculating non-economic damages can be more challenging than economic losses, as there are no concrete bills or receipts to quantify them. Instead, these damages are assessed based on the extent of the victim’s physical and emotional suffering, the impact on their daily life, and the long-term consequences of the accident.

Personal injury attorneys work closely with victims to build a compelling case that accurately reflects the extent of these non-economic losses.

Final Thoughts


Accidents can turn your life upside down in an instant. Taking the right action can mitigate the consequences of the accident. Filing a personal injury claim with the help of a lawyer is the best thing you can do following an accident. You can claim the aforementioned economic losses, along with non-economic losses.