Economic damages
- Medical and rehabilitation bills, past and future
- Lost wages and reduced earning capacity
- Travel, care, equipment and home adaptations
- Vehicle repair and other property loss
Compensation
Economic vs non-economic damages
An injury claim has two halves: the money the accident cost you, and what it took from your life. Both count, but they are proved and valued in very different ways.
The short answer
Economic damages cover losses you can add up: medical bills, lost wages, future care, travel and repairs. Non-economic damages cover harm with no receipt: pain, emotional distress, loss of enjoyment of life. Economic damages are proved with records and calculations. Non-economic damages depend on medical evidence, how the injury changed your daily life and, in some places, legal caps or thresholds.
At a glance
Non-economic damages
- Physical pain and suffering
- Anxiety, depression, sleep problems
- Loss of enjoyment of hobbies and family life
- Scarring, disfigurement and lasting disability
| What differs | Economic damages | Non-economic damages |
|---|---|---|
| What it covers | Financial losses | Human and personal losses |
| Proof | Invoices, payslips, tax returns, expert projections | Medical records, your diary, testimony from family and friends |
| How it's calculated | Arithmetic or expert forecasts | Judgment, guided by comparable cases |
| Other names | Special damages, pecuniary damages | General damages, pain and suffering, non-pecuniary damages |
| Limits | Usually none beyond proof | Caps or thresholds apply in some places |
How non-economic damages get valued
There's no invoice for pain, so each system has its own way of putting a figure on it.
- United States: juries decide at trial. In negotiation, some adjusters start from a multiple of your medical bills or a daily rate, adjusted for severity and recovery time. Some states cap non-economic damages in certain cases, most often medical malpractice, and no-fault states require a threshold before you can claim them after a car crash.
- England and Wales: judges use the Judicial College Guidelines, which give brackets for different injuries. Whiplash from road traffic accidents lasting up to two years is valued on a fixed tariff instead.
- Canada: the Supreme Court set an upper limit on non-pecuniary damages in 1978, adjusted for inflation, which only matters in the most catastrophic cases. Ontario car accident claims also have a threshold and a deductible for pain and suffering.
Proving the half without receipts
Insurers find it easy to question pain they can't see. What moves them is consistency across different sources. Useful evidence includes:
- A short weekly diary of pain, sleep and things you couldn't do.
- Medical notes that record your symptoms at every visit, not just the diagnosis.
- Statements from a partner, friend or employer about how you've changed.
- Photos of visible injuries and scarring over time.
- Evidence of activities you gave up, such as a lapsed gym membership or a club you stopped attending.
Economic damages need the same care. Keep every receipt, including mileage to appointments, prescriptions and help at home. See out-of-pocket expenses and future care costs.
Example
A teacher breaks her ankle in a fall on an icy car park. Her economic damages are straightforward: surgery, physio, eight weeks of unpaid leave and taxis to school. Her non-economic claim rests on her diary and her husband's statement: she couldn't play with her children, dropped out of a hiking group and still limps on long walks a year later.
Common questions
What counts as non-economic damages?
Pain, suffering, emotional distress, loss of enjoyment of life, scarring and disfigurement, and in some places loss of companionship for a spouse. Anything the injury took from you that doesn't come with a bill.
Is there a cap on pain and suffering damages?
Sometimes. Some US states cap non-economic damages in certain cases, often medical malpractice. Canada has an inflation-adjusted upper limit for the most serious injuries, and England and Wales use a fixed tariff for road traffic whiplash.
How do insurance companies calculate pain and suffering?
Many start from the medical bills and treatment length, often using software or a multiplier, then adjust for how serious and lasting the injury is. Strong records of your daily limitations are your best way to push that figure up.
Can I claim non-economic damages if my medical bills were covered?
Usually yes. Pain and suffering is a separate part of the claim. The exception is a no-fault system where you haven't met the injury threshold needed to sue the other driver.
Last reviewed September 2026. General information, not legal advice.