What Are Economic Damages?

According to the Department of Transportation, the annual economic cost of motor vehicle crashes in Texas is over $17 billion. This leads us to ask, what are economic damages?

However, the Houston Chronicle suggests that if you factor in accident-related losses such as lost wages, the real annual toll is closer to $38 billion. Average, hardworking Texans are the ones who shoulder these costs – often financially crippling themselves in the process. 

If you were injured in an accident caused by someone else, here’s what you need to understand: You shouldn’t be footing the bill for their mistake. There is no reason for you to shoulder the economic burden of an accident you didn’t cause, and luckily, you don’t have to when you partner with an experienced personal injury attorney.

With help from the Houston personal injury lawyers at Baumgartner Law Firm, you can hold negligent parties accountable for the damage they have caused to your property, health, and career. Keep reading to understand how economic damages work in Texas so that you can confidently pursue the compensation you deserve. 

Are you drowning in medical debt after being seriously injured in an accident? You don’t have to be. Contact Baumgartner Law Firm online to schedule a free consultation and discuss your legal options for compensation. 

Economic Damages Explained

To understand how economic damages work, you must first understand the underlying concept of “damages.” Some of these terms are self-explanatory, while others may seem slightly misleading. 

But First — What Are Damages?

In the legal world, “damages” represent the various losses a plaintiff experiences due to an accident. When you pursue damages, you pursue compensation for relevant injuries. Note that the word “injuries” also has a special meaning in the legal world, referring to physical health concerns and financial losses. 

Read More: Types of Damages in Personal Injury Cases in Texas

The Definition of Economic Damages

Economic damages refer specifically to financial losses. Any financial loss incurred as a direct result of an accident could be economic damage. As long as the negligence of another party caused these damages, they should be compensated fully after a successful injury claim. 

Examples of Economic Damages

It is easier to understand how economic damages work when you consider various examples:

• Medical expenses. Perhaps the most pressing financial concern injured victims face is their medical bills. Even if the patient ultimately dies as a result of their injuries, healthcare providers may pass unpaid medical bills onto their surviving loved ones. Insurance may also fail to cover these costs, leaving patients with serious debt. 
• Missed wages. An injury that keeps a worker out of commission for a few weeks can result in costly missed wages. For someone earning over six figures, a week of missed work can cost thousands of dollars. More serious injuries can lead to years of missed wages, and this lack of income can compound the issue of unresolved medical debt. Permanent disabilities often lead to a lifetime of lost wages. Those who pass away in car accidents may leave children, spouses, and other dependents without financial support. 
• Funeral costs. Deceased car accident victims also require proper funerals and memorial services. According to the National Funeral Directors Association, the average funeral cost in the United States is almost $8,000. Family members often put themselves into debt to provide their loved ones with dignified burials. 
• Property damage. Plaintiffs may also incur various forms of property damage due to their accidents. The most obvious examples involve auto damage after a crash. Repairing a vehicle can be tremendous, and insurance may not cover the full repair bill. Other valuables may be lost or damaged due to various accidents. 
• Out-of-pocket expenses. Such as deductibles and other expenses you incur due to the injury.

It is important to distinguish between economic and non-economic damages. While the former represents financial losses, the latter refers to emotional or psychological issues. These are often summed up by catch-all phrases such as “emotional distress” or “pain & suffering.” More specific examples include disfigurement, PTSD, depression, loss of enjoyment of life, loss of consortium, humiliation, and so on. Non-economic damages may be challenging to establish due to their abstract nature. 

Who Can Pursue Economic Damages?

A wide range of plaintiffs can pursue economic damages. If you establish that someone else’s negligence caused your accident, you can pursue compensation for your economic damages by filing an injury claim. Economic damages apply not only to car accidents but also to a wide range of other incidents. These include slips and falls, injuries caused by defective products, medical malpractice, etc. 

In some cases, it might not even be necessary to establish that someone else’s negligence caused your economic damages. A workplace injury, for example, falls under workers’ compensation – a program that provides compensation for economic damages regardless of fault. In addition, plaintiffs do not need to establish negligence in “strict liability” claims, such as those involving animal attacks. 

Read More: Do I Really Need an Attorney for a Personal Injury Claim in Texas?

Proving Economic Damages

Establishing the existence of economic damages should be relatively straightforward. Because these damages represent financial losses, there is often a clear paper trail documenting their existence and net cost. Perhaps the most obvious example is a medical bill or receipt.

However, you must seek proper medical treatment to obtain these medical bills. If you fail to seek medical treatment promptly, you may lack the evidence to establish the cost of your injuries. It may even be difficult to establish the existence of your underlying injuries since you will also lack relevant medical records. 

Collect evidence of your earning history and capability to prove the cost of your lost wages. These documents may include income statements, tax returns, pay stubs, and other relevant financial records. With this evidence, you can establish what you would have earned if the injury had not prevented you from working. 

As a general rule, it is smart to save receipts for any out-of-pocket expenses you incur after your injury, even if you’re unsure whether they represent legitimate economic damages. Your injury lawyer in Texas can review them in more detail and determine whether they could lead to compensation. 

Read More: Houston Personal Injury Lawyer

Baumgartner Law Firm: Trusted Personal Injury Attorneys in Houston, Texas

If you have incurred economic damages from your car accident in Texas, it makes sense to cover these costs by filing an injury claim. Whether you suffered a permanent disability or a straightforward fracture, negligent parties should pay for your medical expenses, missed wages, and property damage. 

The Baumgartner Law Firm has been assisting injured plaintiffs in Texas for over 40 years, and we understand the financial devastation that car accidents can cause. Founded in 1985, our law firm has since established a solid reputation for assisting numerous victims and their families. We have a proven track record of guiding our clients to multi-million-dollar results, so book your consultation today and take the first step toward achieving meaningful compensation. 

Related Resources:

• Types of Damages in Personal Injury Cases in Texas
• Houston Leads the State in 18-Wheeler Accidents
• What Are Non-Economic Damages in Texas?
• A Guide to Understanding the Costs of a Car Accident
• How Much Can You Sue for Personal Injury in Texas?
• How Are Wrongful Death Settlements Calculated

Baumgartner Law Firm Practice Pages:

• Car Accident
• Truck Accident
• Texas Personal Injury
• Wrongful Death

About Our Law Firm

Baumgartner Law Firm is a Houston personal injury law firm headed by Greg Baumgartner.

Our firm was established in 1985 and has helped thousands of injury victims get maximum compensation for their cases. If you have been injured in an accident in Houston, TX, contact us for a free, no-obligation consultation. (281) 587-1111.

Helping these areas around Houston

Houston, Sugar Land, Conroe, The Woodlands, Cypress, Spring,  Atascocita, Kingwood, and Tomball.