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Understanding Economic vs. Non-Economic Damages in Personal Injury Cases

  • Writer: Ted Novick
    Ted Novick
  • Sep 5
  • 3 min read

Being injured in an accident can turn your life upside down. Suddenly, you’re dealing with pain, doctor’s visits, missed work, and the stress of figuring out how to move forward. On top of that, you may wonder, “How much compensation can I even get?”


The answer depends on the types of damages involved in your personal injury claim. In New York, damages are generally divided into economic and non-economic. Understanding the difference can make the process less overwhelming and help you feel more confident in protecting your rights.


1. What Are Economic Damages?

Economic damages are the “numbers you can count” part of a personal injury claim. They are financial losses that result directly from your accident and are usually easy to document with bills, receipts, or pay stubs.


Some common examples include:

  • Medical bills: Hospital stays, surgeries, prescriptions, physical therapy, and future care.

  • Lost income: Wages you miss while recovering.

  • Rehabilitation costs: Expenses for physical therapy, counseling, or special equipment.

  • Property damage: Costs for damaged property, like a vehicle, if tied to the injury.


For example, imagine you’re in a minor car accident and break your arm. You spend a week in the hospital, attend a few weeks of physical therapy, and miss time at work. All these costs are considered economic damages. They’re straightforward to prove because you have receipts and pay stubs.


2. What Are Non-Economic Damages?

Non-economic damages are a little trickier—they cover the emotional and personal impact of your accident. These damages aren’t tied to bills, but they’re just as real and important.


Examples include:

  • Pain and suffering: Physical discomfort or loss of mobility.

  • Emotional distress: Anxiety, depression, or PTSD resulting from the accident.

  • Loss of enjoyment of life: Missing out on hobbies, sports, or social activities.

  • Loss of consortium: Strain on relationships with family or a spouse.


Going back to our car accident example, maybe your broken arm keeps you from playing with your kids or enjoying your favorite sport. You might feel frustrated, anxious, or depressed. While these impacts aren’t measured in dollars, they are considered non-economic damages—and they are important to your claim.


3. Why Both Types of Damages Matter

Economic damages make sure your tangible costs, like medical bills or lost wages, are covered. Non-economic damages recognize the personal toll the accident has on your life. Insurance companies often try to undervalue the non-economic portion, so having an attorney who can fully explain the impact of your injury is crucial.


4. How Non-Economic Damages Are Calculated

Calculating non-economic damages can feel subjective, but there are ways to estimate them. Factors considered include:

  • Severity of your injury

  • Length of recovery

  • Permanent or long-term effects

  • Impact on daily life and emotional well-being


Attorneys sometimes use a multiplier method, where your economic damages are multiplied by a number (usually between 1.5 and 5) to estimate non-economic damages. For example, if your medical bills and lost wages total $10,000 and your injury significantly affects your daily life, non-economic damages might be estimated at $20,000 with a multiplier of 2.


5. Why You Need an Attorney

Filing a personal injury claim can feel overwhelming. Insurance companies may offer quick settlements that don’t fully account for your non-economic damages.


A Mahopac, NY personal injury attorney can help you:

  • Document your injuries and recovery

  • Show the impact on your daily life

  • Negotiate with insurance companies

  • Represent you in court if needed


With professional guidance, you can focus on healing while your attorney works to ensure your claim is fair and fully supported.


6. Final Thoughts

Accidents affect more than your body—they affect your life, your routine, and your peace of mind. Economic damages cover measurable costs like medical bills and lost wages, while non-economic damages account for pain, suffering, and emotional distress. Both are essential to getting fair compensation.


If you’ve been injured, speaking with a Mahopac, NY personal injury attorney can give you guidance, support, and peace of mind. With the right help, you can focus on recovery while your attorney fights to secure the compensation you deserve.

 
 
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