Types of Damages in a Car Accident Claim (Economic Versus Non-Economic)

It can be difficult for victims of an accident to determine which damages qualify as economic or non-economic, and the percentage of liability each party needs to be assigned for their role in the incident. Having an experienced Phoenix car accident attorney can alleviate this stress, help you to focus on your recovery, and ensure that you receive the maximum compensation possible under Arizona law.

Types of Damages in a Car Accident Claim

Categorizing Damages and Percentage Fault

To explain how car accident lawyers determine compensation amounts, it’s important to understand how Arizona allocates damages. Accidents involving teens or elderly drivers, as well as drivers of all ages, are subject to the concept of comparative negligence. 

This means that the compensation received by the person who makes a claim is reduced by their percentage of fault. In Arizona, even if a driver is 99% responsible for an accident, they can still receive 1% of the compensation distributed to the parties who suffered losses or injuries. 

Victims of a car accident usually pursue compensation for one or both types of damages:

• Economic damages: This category includes tangible losses, such as medical expenses, damaged or lost property, and lost wages. Examples include hospital bills, ongoing therapy, motor vehicle damage, loss of current and future income due to an inability to work, etc.
• Non-economic damages: Pain and suffering, permanent disabilities, emotional distress, and a diminished quality of life fall under this category. Chronic pain, depression, inability to participate in activities previously enjoyed, and post-traumatic stress disorder are examples of issues that could be included in this type of claim. Non-economic damages are subjective and harder to prove than economic damages.

When non-economic damages are included in a car accident claim, your attorney will use either the multiplier method or the per diem method to quantify these losses. 

With the multiplier method, economic damages are multiplied by a factor between one and five based on the severity of the injuries. When using the per diem method, the number of days to recover is multiplied by a daily rate usually based on the amount the victim typically earns in one day.

Less commonly, punitive damages may be granted to punish a driver for gross negligence or blatant disregard for public safety (e.g, driving with a revoked license).

What Gage Mathers Can Do for You

Being in a car accident can be an overwhelming experience. In addition to getting the medical care you need, police records and other evidence need to be collected, witnesses need to be interviewed, and accident experts need to be consulted. Insurance companies may also try to bully you into accepting a low offer.

Speaking to an experienced personal injury lawyer from Gage Mathers soon after an accident is essential. We can investigate the crash and aggressively negotiate with insurance companies and other parties on your behalf so you can focus on your recovery.

Contact Gage Mathers today for a free consultation and honest assessment of your legal rights to compensation!

About the Author

Joseph D'Aguanno

Guided by the belief that being a highly skilled specialist in a narrow field is better than being ordinary in everything, Joseph “JD” D’Aguanno leads Arizona’s best personal injury law firm in Phoenix, AZ. Having extensive cross-training in pre-litigation negotiations and trial lawyer skills, with decades of experience, JD strives to provide clients with the most valuable legal services a personal injury lawyer can provide. Under his direction, Gage Mathers Law Group is an award-winning personal injury law firm providing aggressive representation to victims of a car accident, medical malpractice, dog bite, motorcycle accident, and other injurious events. Gage Mathers is trusted by thousands of lawyers and clients throughout the country because of their reputation for getting clients the maximum compensation they deserve.

Years of experience: Over 24 years
Bar number: 020421
Location: Phoenix, AZ
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