Car Accident Economic Damages

Car accident economic damages provide financial compensation for tangible, monetary losses and future expenses. While tallying these accident-related costs may appear straightforward, the full extent of economic damages may not be obvious. 

It’s crucial that you work with a highly skilled car accident lawyer in Chicago who can ensure the at-fault party is responsible for all your damages. Contact us today for a free consultation about your personal injury lawsuit. 

Are Medical Expenses Covered By Economic Damages?

Medical bills and future medical expenses related to the car accident are typically the largest portion of economic damages. Car accident victims can claim medical costs such as:

• Surgeries
• Emergency room visits
• Medical equipment
• Physical therapy
• Medications

These medical bills will first be paid by your health insurance, which will then seek compensation from the auto insurance company via subrogation. 

To ensure that you have documented all relevant injuries, visit an emergency room as soon as possible after the accident, such as Northwestern Memorial Hospital or UChicago Medicine. Ensure you follow your doctor’s orders and continue to document all expenses. 

Can Economic Damages Recover Lost Wages and Income?

A personal injury lawyer can demand lost wages as part of your car accident claim. To prove this, you will provide evidence of time off work and your medical records demonstrating that you were unable to work during this time.

Employees can use their W-2s and pay stubs to verify their income. For self-employed individuals, profit and loss statements, bank statements, and tax returns can be used to estimate their average weekly income. 

Is Diminished Earning Capacity and Future Lost Income Covered?

If your injuries prevent you from returning to your previous employment, you can claim future lost income. This is calculated by identifying your previous wages, plus any potential bonuses, over the number of viable working years you may have left. 

Economic factors, like inflation and expected career trajectory, will also be incorporated into this. Finally, your current wage will be subtracted from this sum to provide an estimate of your diminished earning capacity for the insurance claim. 

Are Property Damage and Vehicle Repair Costs Covered By Economic Damages?

Yes, property damage is included in economic damages. One study found that the median cost of property repairs was $5,000, with a mean of $7,013. 

Your insurance company may determine that your vehicle is totaled, which means that the cost of repairing it exceeds its value. You can then make a claim for the vehicle’s current value, minus any insurance deductible you may have.

In some cases, the vehicle can be repaired. The Illinois Automotive Repair Act prohibits insurance agencies from requiring you to have your vehicle repaired at their shop of choice, and you are entitled to a written estimate (815 ILCS 306/). You can then submit this as part of your claim. 

Are Out-of-Pocket Costs and Miscellaneous Expenses Covered?

You may also be entitled to certain miscellaneous economic damages, which can include:

• Mileage, parking fees, and public transportation to doctors’ appointments
• Medical costs that are not covered by insurance, including physical therapy
• Copays and deductibles
• Prescription copays and over-the-counter treatments
• Supplies like braces, crutches, bandages, and wheelchairs
• Childcare and babysitters while recuperating
• Home health aides and personal assistants
• Home and vehicle modifications, like wheelchair ramps
• Damaged personal property like glasses, clothing, and cell phones

What Is The Difference Between Economic and Non-Economic Compensation?

A simple explanation is that economic damages are anything that can be proved by receipts, pay stubs, invoices, and written estimates. If a specific sum can be placed on a certain expense, then it is economic damage.

Non-economic damages are for intangible losses, such as pain and suffering or emotional distress. These are more difficult to quantify, so personal injury lawyers use calculators to estimate damages. One of the most common options is to use an injury multiplier, which multiplies your hard losses by a factor, like 1.5. The more severe your injuries, the higher the factor. 

The Illinois Supreme Court case Lebron v. Gottlieb Memorial Hospital removed monetary caps on these losses, meaning that a court like the Circuit Court of Cook County can award any sum they feel is appropriate. 

How We Prove Your Financial Losses in Car Accident Cases

Firstly, it is essential that you report the accident as soon as possible, as required by Illinois law (625 ILCS 5/11-408). In Chicago, you’re required to report if there is more than $250 in damages (9-56-010). This documents the accident and ensures that insurance companies cannot argue that your injuries are not related to the crash, which is a common insurance tactic.

Once you have filed a report, our Chicago personal injury lawyers will gather all documentation that shows your financial costs. These include medical bills, pay stubs, vehicle repair estimates, tax returns, and smaller receipts like public transit stubs or receipts for hospital parking. 

Our team will also work with experts like economists and life care planners to discuss what future expenses you may have. 

For example, an expert in your field could discuss the expected career trajectory to help demonstrate what lost wages would be appropriate in your case. A life care planner can explain what challenges a car accident victim like you may face in the future, such as revision surgeries or loss of mobility for spinal cord injuries.

Together, these create a concrete sum we can incorporate into a demand letter for your car accident claim. 

Is Wrongful Death Covered By Economic Damages?

Wrongful death is a separate type of economic damages that are covered by the Illinois Wrongful Death Act (740 ILCS 180/). The next of kin can seek funeral and burial expenses, medical expenses prior to death, and loss of financial support. 

Contact Rosenfeld Injury Lawyers for a Free Case Review

Car accident cases quickly become complicated due to the high costs and complex liability. Our attorneys have over 100 years of combined legal experience and can accurately assess the full sum of your claim.

Our Super Lawyers® work on a contingency fee basis: no fees unless we earn you compensation. To schedule a free consultation with our team, call us at (888) 424-5757 or use our online contact form.