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Glossary

Damages

The money a court can award, or a settlement pays, to make up for losses caused by someone else's wrong.

Last reviewed By the Editorial team 2 min read

General information, not legal advice. Talk to a licensed attorney in your state.

Quick answer

Damages are the money a court can award, or a settlement pays, to make up for losses caused by someone else's wrong. In a car accident claim, they usually fall into Economic damages. Losses with a receipt or a paycheck behind them: medical bills, lost wages, repairs and other out-of-pocket costs. Glossary, such as medical bills and lost pay, and Non-economic damages. Losses without a price tag, such as pain, suffering, emotional distress and loss of enjoyment of life. Glossary, such as pain and suffering. Punitive damages, meant to punish, are rare.

In a car accident claim#

Damages are the last element of a negligence claim: even a clearly careless driver owes nothing unless the crash caused a real loss. The aim of compensatory damages is to make the injured person whole, as far as money can. Each type is proven in its own way. Bills, pay stubs and repair estimates prove economic losses, while medical records and your own account of daily life show non-economic harm.

In practice, damages are also shaped by limits. The at-fault driver's policy limits often cap what an insurer will pay, some states cap certain damages by law, and fault rules cut the total by your own share of blame. Our guide to types of damages covers each category, pain and suffering explains the hardest one to value, and the money hub brings them together.

Example#

Questions people ask

What is the difference between "damage" and "damages"?

"Damage" usually means physical harm, such as a dented car. "Damages" is the legal term for the money paid to make up for losses, including that damage.

Are punitive damages part of a normal car accident claim?

Rarely. Punitive damages require serious misconduct beyond ordinary carelessness. In Texas, for example, a claimant must prove clear and convincing evidence that the harm resulted from fraud, malice or gross negligence.

Sources

  1. Cornell Law School, Legal Information Institute, Wex: damages — general definition and types of damages
  2. United States Courts, Glossary of legal terms — damages in a civil case
  3. Texas Legislature, Civil Practice and Remedies Code § 41.003(a) — as of October 2026

Last reviewed October 29, 2026 by the Accident Claim Facts editorial team. Found an error? Tell us.

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