Economic Damages

If you were injured in a car accident, slip and fall, or other incident, you might be facing medical bills, lost wages, and other unexpected expenses. Texas law allows victims to recover economic damages, which cover the financial costs of an accident caused by someone else’s negligence.

Unlike non-economic damages, which compensate for pain and suffering, economic damages focus on actual, measurable losses. These damages are easier to calculate but still require strong proof to secure full compensation.

What Are Economic Damages?

Economic damages cover financial losses directly related to an accident. These losses can be measured in dollars and may include:

• Medical expenses: Bills from doctor visits, hospital stays, surgeries, medications, and physical therapy.
• Lost wages: Compensation for the income you missed while recovering.
• Future lost earnings: If your injuries prevent you from working in the same job or earning as much as before.
• Property damage: Repair or replacement costs for vehicles and personal items damaged in the accident.
• Rehabilitation costs: Expenses for physical therapy, in-home care, or assistive devices like wheelchairs.
• Household services: The cost of hiring help for tasks you can’t manage due to your injuries.

Since economic damages have a clear dollar amount, they are typically easier to prove than non-economic damages like pain and suffering.

How Do You Prove Economic Damages?

To recover economic damages, you must show proof of your financial losses. Common types of evidence include:

• Medical bills: Copies of all hospital, doctor, and treatment expenses.
• Pay stubs and tax returns: Documents showing lost wages and future earning potential.
• Receipts and invoices: Proof of out-of-pocket costs related to your injuries.
• Expert testimony: Medical or financial experts who can explain future medical costs or lost income.

Insurance companies may try to dispute your claim, so having strong evidence helps ensure you get the compensation you deserve. 

Economic damages are usually straightforward to prove and calculate, but certain kinds can be more complex. For example, future lost earnings claims might require assistance from a forensic economist or other expert who can speak to the extent of your losses. 

Are There Limits on Economic Damages in Texas?

Texas does not cap economic damages in most personal injury cases. This means you can recover the full amount of your financial losses if you provide proper evidence. However, note that in terms of non-economic damages and your overall compensation, there are caps for certain kinds of cases (like medical malpractice). 

Note further that Texas does have modified comparative negligence laws, meaning:

• If you are partly responsible for the accident, your compensation may be reduced by your percentage of fault.
• If you are found to be more than 50% at fault, you cannot recover any damages.

This makes proving fault an important part of your case. An attorney can help gather evidence to show the other party’s responsibility. They can also help to minimize the level of fault you are assessed, if any.

How Long Do You Have To File a Claim for Economic Damages?

In Texas, the statute of limitations for most personal injury claims is two years from the date of the accident. If you don’t file within this deadline, you may lose your right to compensation.

There are some exceptions, such as cases involving minors or government entities, which may have different deadlines. To avoid missing out on compensation, it’s best to speak with a lawyer as soon as possible.

How Much Does It Cost to Hire a Personal Injury Lawyer?

Most personal injury lawyers in Texas work on a contingency fee basis. This means:

• No upfront costs: You don’t pay anything when you hire the lawyer.
• Payment only if you win: The attorney’s fee comes from your settlement or court award.
• Typical fees: Most lawyers take around 33% to 40% of the final settlement, though this varies.

This system makes legal representation accessible to injury victims, even if they don’t have money upfront. It also motivates the lawyer to fight for the highest possible settlement, since their payment depends on winning the case.

Contact an Austin Personal Injury Attorney for Legal Help

If you were injured in Texas, recovering economic damages can help cover medical bills, lost wages, and other costs. But insurance companies may try to pay you less than you deserve.

An experienced Austin personal injury lawyer can help you every step of the way, from filing insurance claims to taking your case to trial. Most personal injury attorneys work on a contingency fee basis, meaning you don’t pay anything upfront—they only get paid if you win your case. Contact a lawyer today for a free consultation to discuss your options.