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Glossary

Economic damages

Losses with a receipt or a paycheck behind them: medical bills, lost wages, repairs and other out-of-pocket costs.

Last reviewed By the Editorial team 2 min read

General information, not legal advice. Talk to a licensed attorney in your state.

Quick answer

Economic damages are losses that can be measured in money from records: medical bills, lost wages, car repairs and other out-of-pocket costs, both past and future. They are the part of a claim with a receipt or a paycheck behind it, unlike Non-economic damages. Losses without a price tag, such as pain, suffering, emotional distress and loss of enjoyment of life. Glossary such as pain and suffering.

In a car accident claim#

Common economic damages after a crash include ambulance, hospital, therapy and prescription costs; pay lost while you recovered; reduced future income if you can't return to the same work, called Loss of earning capacity. A lasting reduction in your ability to earn money because of an injury. It looks at what you could have earned, not only at the paychecks you have already missed. Glossary; repair or replacement of the car; a rental car; travel to appointments; and paid help at home. For serious injuries, future care is often set out in a Life care plan. A report, usually prepared by a medical or rehabilitation expert, that lists the care, equipment and services a seriously injured person is expected to need over their lifetime, and what they may cost. Glossary.

Each item needs proof: itemized bills, pay stubs, a letter from your employer, tax returns or repair estimates. Future losses usually need a doctor's or expert's opinion. State law can affect the amount counted for medical bills; in Texas, recovery is limited to the amount actually paid or incurred by or on behalf of the claimant. Our guides to types of damages and lost wages explain each category, and the injuries hub covers the treatment behind the bills.

Example#

Questions people ask

What is the difference between economic and non-economic damages?

Economic damages cover losses you can add up from records, such as bills and lost pay. Non-economic damages cover harm without a price tag, such as pain, anxiety and lost enjoyment of life.

Can I claim future economic damages?

Yes. Future medical care and future lost income can be part of a claim, but they must be shown with evidence, usually opinions from doctors or other experts.

Sources

  1. Cornell Law School, Legal Information Institute, Wex: damages — compensatory damages
  2. Texas Legislature, Civil Practice and Remedies Code chapter 41 — damages definitions and medical expenses actually paid or incurred
  3. Judicial Council of California, Civil Jury Instructions (CACI) 2026 — No. 3903C (past and future lost earnings)

Last reviewed October 29, 2026 by the Accident Claim Facts editorial team. Found an error? Tell us.

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