When someone is injured due to another person’s negligence, they may be entitled to compensation for their losses.
These losses are often categorized into two main types: economic and non-economic damages. Economic damages refer to the financial losses a person incurs due to an injury.
Understanding economic damages is crucial for anyone pursuing a personal injury claim in New Mexico.
What Are Economic Damages?
Economic damages are losses that can be quantified in monetary terms. These damages cover the tangible expenses that result from an injury. Unlike non-economic damages—which compensate for intangible harms such as pain and suffering or emotional distress—economic damages have a clear financial value.
Economic damages are meant to make the injured person financially whole. They are designed to reimburse the injured person for expenses directly caused by the accident or incident. In personal injury cases, the goal is to recover for the actual financial losses that the victim incurred as a result of their injuries.
Types of Economic Damages
Economic damages can be broad, covering both immediate and long-term costs. Common types of economic damages include medical expenses, lost wages, loss of earning capacity, property damage, and other out-of-pocket costs.
Medical Expenses
Medical expenses are one of the most common forms of economic damages. They include the cost of hospital stays, surgeries, doctor visits, prescription medications, rehabilitation, and therapy. Medical expenses can continue for years if the injury is severe, and all related costs can be considered economic damages in a personal injury claim.
Ensuring that every medical expense is accurately documented is essential for a successful claim.
Lost Wages
Lost wages refer to the income a person loses because they cannot work due to their injury. This includes time taken off for medical treatment or recovery. If a person misses days, weeks, or months of work, they may be entitled to compensation for the income they would have earned during that period.
Proper documentation from employers and medical professionals is often required to calculate lost wages accurately.
Loss of Earning Capacity
Loss of earning capacity is slightly different from lost wages. It applies when an injury reduces a person’s ability to earn income in the future. For example, if a serious injury prevents someone from returning to their previous job or limits their career growth, they may be entitled to compensation for the lost potential earnings over their lifetime.
This calculation often requires expert testimony and careful evaluation of the person’s career prospects.
Property Damage
Sometimes personal injury accidents also cause damage to property. This can include vehicles in a car accident, personal belongings, or equipment used for work. Economic damages cover the cost to repair or replace damaged property. It helps ensure that the injured person does not bear financial responsibility for losses caused by someone else’s negligence.
How Economic Damages Are Calculated
Calculating economic damages requires careful documentation of all financial losses. Medical bills, pay stubs, tax returns, repair estimates, and receipts are essential pieces of evidence. Insurance companies and courts often examine this evidence closely to determine fair compensation.
For lost wages and loss of earning capacity, expert calculations may be necessary. Economists or vocational experts may analyze a person’s work history, earning potential, and the long-term impact of the injury. Accurate calculation ensures that the injured person receives the full compensation they deserve.
Why Economic Damages Are Important
Economic damages are critical in a personal injury case because they provide concrete, measurable compensation. They help cover the real costs of an injury, allowing the victim to recover without facing financial hardship.
Unlike non-economic damages—which can be subjective and harder to quantify—economic damages rely on documented expenses, making them a more straightforward aspect of a personal injury claim.
Recovering economic damages also sends a message that negligent behavior has financial consequences. It encourages responsible actions and ensures that injured individuals are not left to bear the financial burden of someone else’s mistakes.
Securing Fair Compensation
Understanding economic damages is a key part of protecting your financial future after an injury. With proper documentation and legal support, injured individuals can recover the full amount they are entitled to under New Mexico law. Economic damages are not just numbers—they represent the financial stability and security needed to move forward after an injury.
Planning for Your Recovery
Economic damages are a vital part of any personal injury case in Albuquerque, New Mexico. They cover medical expenses, lost income, property damage, and other financial losses caused by an injury. Accurate documentation and legal guidance are essential to ensure that these damages are fully recovered.
By understanding and pursuing economic damages, injured individuals can focus on their recovery while protecting their financial well-being.
Contact Jones Injury Attorneys for a Free Consultation With Our Albuquerque Personal Injury Attorneys Today
Navigating a personal injury claim and securing full compensation for economic damages can be complex. At Jones Injury Attorneys, we understand that these quantifiable losses—including medical bills, lost wages, and loss of earning capacity—are essential for your financial stability and long-term recovery.
If you or a loved one has been injured due to negligence in Albuquerque, New Mexico, do not face the insurance companies alone. Call us today at (505) 578-2620 to schedule a free consultation with our Albuquerque personal injury lawyers to ensure your economic damages are accurately calculated and aggressively pursued.