Economic damages are the financial losses a person suffers after a car accident, construction accident, or any other type of accident. These are the measurable costs you can prove with documents like bills, receipts, or pay stubs.
In Phoenix, Arizona, economic damages are a key part of personal injury claims. They help restore what you’ve lost due to someone else’s negligence. Understanding how these damages work is essential to building a strong claim and getting the compensation you deserve.
What Are Economic Damages?
Economic damages, also known as “special damages,” include direct, out-of-pocket losses that occur because of an accident or injury. These damages are typically easier to calculate than non-economic damages (like pain and suffering) because they have a specific dollar value.
Some of the most common types of economic damages include:
- Medical expenses: This includes ER visits, hospital stays, surgeries, follow-up doctor visits, medications, physical therapy, medical devices, and future medical care.
- Lost income: If you miss work while recovering, you can claim wages or salary you would have earned.
- Loss of earning capacity: If your injury limits your ability to work or forces you to take a lower-paying job, you can seek damages for future lost income.
- Property damage: If a vehicle, phone, clothing, or any other belongings were damaged in the incident, you can claim the cost of repair or replacement.
- Out-of-pocket costs: This includes transportation to medical appointments, childcare, household help, or assistive devices.
All of these damages aim to restore you financially to where you were before the accident happened.
How Are Economic Damages Proven?
To recover economic damages, you must present credible evidence of your losses. The more documentation you have, the stronger your claim.
Helpful documentation may include:
- Medical bills and insurance statements
- Pay stubs or tax returns showing income before and after the injury
- Employment records or letters from your employer
- Receipts for medications, equipment, or transportation
- Repair estimates for property damage
- Expert opinions (for long-term care or reduced earning potential)
You don’t need to calculate everything yourself. A personal injury lawyer can gather the necessary documents and work with experts to assess long-term financial losses, especially when dealing with future medical treatment or diminished earning capacity.
Are There Limits on Economic Damages in Arizona?
No. Arizona does not cap economic damages in personal injury cases. If you can prove your losses, the court can award full compensation, even if the amount is large.
This is important in serious injury cases that require extensive medical care or result in permanent disabilities. Victims may be entitled to hundreds of thousands (or even millions) of dollars in economic damages based on the cost of long-term treatment and income loss.
Can I Recover Economic Damages if I Was Partly at Fault?
Yes, but your award may be reduced. Arizona uses a pure comparative fault rule. This means your compensation will be reduced in proportion to your share of the blame.
For example, if you are found to be 20% at fault for a car accident and your total damages are $100,000, you can still recover $80,000.
How Are Economic Damages Different From Non-Economic Damages?
Economic damages are based on actual costs. Non-economic damages cover losses like pain and suffering, emotional distress, or loss of companionship. These losses are real but harder to measure.
Key differences include:
- Economic damages have receipts, invoices, and bills supporting them.
- They are usually calculated with more precision.
- Juries and insurers are less likely to dispute the dollar value if the documentation is reliable.
In most personal injury cases, both economic and non-economic damages are awarded together. But economic damages often form the backbone of a claim.
Why Economic Damages Matter in Personal Injury Cases
Economic damages are critical because they help make you whole. Without them, injury victims could be left paying out of pocket for expenses caused by someone else’s carelessness.
Some of the most significant long-term financial consequences include:
- Surgeries or ongoing rehab
- The inability to work at your prior job
- The cost of hiring help at home
- Unexpected travel for specialized treatment
- Reduced earning ability due to permanent injuries
Over time, these losses add up. If someone else caused your injury, they, or their insurance company, should be held responsible for the full financial fallout.
Contact KRLG Injury Lawyers to Schedule a Free Consultation With a Phoenix Personal Injury Lawyer
If you’ve been injured in an accident and are facing medical bills, lost income, or other financial stress, KRLG Injury Lawyers can help. We will work hard to make sure every dollar of your economic damages is accounted for and pursued.
Contact our law office today to arrange a free consultation with a Phoenix personal injury lawyer.
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KRLG Injury Lawyers Scottsdale
7702 E Doubletree Ranch Rd #150, Scottsdale, AZ 85258
(623) 303-5754