# Economic damages

> Economic damages are losses with a bill or paycheck behind them: medical costs, lost wages, repairs and other expenses. What counts and how it is shown.

Canonical page: https://accidentclaimfacts.com/glossary/economic-damages/  
Last reviewed: October 29, 2026 by the Accident Claim Facts editorial team  
General information, not legal advice. Talk to a licensed attorney in your state.

## Quick answer

Economic damages are losses that can be measured in money from records: medical bills, lost wages, car repairs and other out-of-pocket costs, both past and future. They are the part of a claim with a receipt or a paycheck behind it, unlike noneconomic damages such as pain and suffering.

## In a car accident claim

Common economic damages after a crash include ambulance, hospital, therapy and prescription costs; pay lost while you recovered; reduced future income if you can't return to the same work, called loss of earning capacity; repair or replacement of the car; a rental car; travel to appointments; and paid help at home. For serious injuries, future care is often set out in a life care plan.

Each item needs proof: itemized bills, pay stubs, a letter from your employer, tax returns or repair estimates. Future losses usually need a doctor's or expert's opinion. State law can affect the amount counted for medical bills; in Texas, recovery is limited to the amount actually paid or incurred by or on behalf of the claimant. Our guides to [types of damages](https://accidentclaimfacts.com/money/types-of-damages/) and [lost wages](https://accidentclaimfacts.com/money/lost-wages/) explain each category, and the [injuries hub](https://accidentclaimfacts.com/injuries/) covers the treatment behind the bills.

## Example

> **Example:** A driver with a broken ankle lists the economic damages: the ambulance, emergency room, surgery and physical therapy bills; six weeks of lost pay, confirmed in a letter from the employer; and mileage to appointments. Each item is backed by a bill, a pay record or a simple log.

## Related terms

- [Noneconomic damages](https://accidentclaimfacts.com/glossary/noneconomic-damages/)
- [Damages](https://accidentclaimfacts.com/glossary/damages/)
- [Loss of use](https://accidentclaimfacts.com/glossary/loss-of-use/)
- [Mitigation of damages](https://accidentclaimfacts.com/glossary/mitigation-of-damages/)

## FAQ

### What is the difference between economic and non-economic damages?

Economic damages cover losses you can add up from records, such as bills and lost pay. Non-economic damages cover harm without a price tag, such as pain, anxiety and lost enjoyment of life.

### Can I claim future economic damages?

Yes. Future medical care and future lost income can be part of a claim, but they must be shown with evidence, usually opinions from doctors or other experts.

## Sources

- [Cornell Law School, Legal Information Institute, Wex: damages](https://www.law.cornell.edu/wex/damages) — compensatory damages
- [Texas Legislature, Civil Practice and Remedies Code chapter 41](https://tcss.legis.texas.gov/resources/CP/htm/CP.41.htm) — damages definitions and medical expenses actually paid or incurred
- [Judicial Council of California, Civil Jury Instructions (CACI) 2026](https://courts.ca.gov/system/files/file/judicial_council_of_california_civil_jury_instructions_2026.pdf) — No. 3903C (past and future lost earnings)