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  • Practice AreasGallo Law is an Elite Accident Law Firm that practices car accidents, truck accidents, motorcycle accidents, pedestrian accidents, Uber accidents, Lyft accidents, and wrongful death cases.
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    • Motorcycle AccidentsMotorcycle accident? Gallo Law helps injured riders recover after serious crashes. Serving Orange County, Los Angeles, and Southern California. Free case review.
    • Pedestrian AccidentsPedestrian accidents, including walking through crosswalks, sidewalks, on the street, in parking lots, on skateboards, on roller skates, on rollerblades, on scooters, and in driveways, can be terrible auto accidents. Gallo Law represents victims to relieve them of the stress, fight insurance companies, and deliver justice and compensation to Gallo Law’s clients.
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What are “Damages” in a car accident case and how do they apply to you?

February 20, 2025

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Car Accidents

In California, individuals injured in car accidents may be entitled to various forms of compensation, known as “damages“. Understanding the types of recoverable damages is crucial for victims seeking fair restitution. Consulting with an experienced car accident lawyer can provide personalized guidance tailored to your specific circumstances.

1. Economic Damages

Economic damages, or special damages, compensate for tangible financial losses resulting from an accident. Examples include:

  • Medical Expenses: Costs for hospital stays, surgeries, medications, and rehabilitation. For instance, if you sustain a broken leg in a collision, the expenses for emergency care, surgery, and physical therapy would be covered under economic damages. Medical expenses can be for both past and future medical expenses. This means that if you have incurred medical bills as a result of the car accident, you can claim them, and you can also claim future medical expenses. Future medical expenses are typically calculated by a doctor providing his or her prediction or prognosis as to the future medical care needed and how much it is likely to cost. Future medical expenses can also be determined by a life care plan, where a medical professional provides a full analysis of your condition, recommended future treatment, and how much it will likely cost.
  • Lost Wages: Income lost due to the inability to work during recovery. Imagine a delivery driver who, after a severe accident, cannot work for several months; the wages lost during this period are recoverable.
  • Lost Earning Capacity: You can recover the amount of what you would’ve made in the future. At the time of settlement or trial, if you are still unable to work, you can claim that you are going to be missing income in the future as well as what you already lost.
  • Property Damage: Repairs or replacement of your vehicle and other personal property damaged in the accident. If your car is totaled in a crash, the cost to replace it would fall under economic damages.

As you can tell, even the most basic aspects of a car accident case can be complicated. That’s why it’s important to contact an experienced car accident lawyer right away.

2. Non-Economic Damages

Non-economic damages, or general damages, address intangible losses that don’t have a direct monetary value. These include:

  • Pain and Suffering: Physical discomfort and emotional distress endured due to the accident. For example, a person experiencing chronic pain and anxiety after a traumatic collision may be compensated for these hardships.
  • Loss of Enjoyment of Life: Inability to engage in hobbies or activities once enjoyed. Consider an avid cyclist who, after a spinal injury from an accident, can no longer ride; this loss is compensable.
  • Emotional Distress: Psychological impacts such as depression, anxiety, or post-traumatic stress disorder (PTSD) resulting from the accident. A passenger developing PTSD after a severe crash may seek damages for their mental anguish.

3. Costs

Beyond direct damages, victims may incur additional costs, including:

  • Court Costs: Filing fees, costs for obtaining medical records, and other litigation-related expenses.
  • Expert Witness Fees: Charges for specialists who provide testimony to support your claims.

4. California Civil Code Section 998

California’s Civil Code Section 998 encourages settlement before trial. It allows either party to make a formal settlement offer; if the offer is rejected and the refusing party fails to obtain a more favorable judgment, they may be penalized by having to pay the offering party’s post-offer costs. For example, if a car accident lawyer advises their client to offer a $100,000 settlement under Section 998, and the defendant rejects it but later loses at trial with a $150,000 judgment, the defendant may be responsible for additional costs incurred after the offer was made. Also, the defendant would be required to pay an additional 10% interest on top of the total judgment amount.

5. Punitive Damages

Punitive damages are awarded to punish defendants for particularly egregious or malicious conduct and to deter similar actions in the future. In California, obtaining punitive damages requires proving by clear and convincing evidence that the defendant acted with oppression, fraud, or malice. For instance, in the landmark case Grimshaw v. Ford Motor Co., punitive damages were awarded when it was revealed that Ford knowingly sold vehicles with dangerous defects. For car accidents, punitive damages can apply when the other driver was extremely reckless. For example, if the driver was drunk, driving through an elementary school area when kids were walking around, and the driver hits a child, that driver may have to pay punitive damages. Another example, the driver may have to pay punitive damages if they received their second or third DUI when causing the car collision.

6. Comparative Fault and Reduction of Recoverable Damages

California follows a “pure comparative negligence” system, meaning that if you are partially at fault for an accident, your compensation is reduced by your percentage of fault. For example, if you are found to be 20% at fault in a collision and your total damages amount to $100,000, you would be entitled to recover $80,000. Even if you are 99% at fault, you can still recover 1% of your damages. This system underscores the importance of having a skilled car accident lawyer to advocate on your behalf and minimize any assigned fault.

Understanding these categories of damages and legal nuances is essential for anyone involved in a car accident in California. Consulting with an experienced car accident lawyer can help ensure you navigate the complexities of your claim effectively and secure the compensation you deserve.

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The Accident Lawyer You Need

  • HomeGallo Law is California’s elite personal injury firm, led by attorney Joseph Gallo. We represent victims of car accidents, wrongful death, rideshare crashes, and catastrophic injuries with unmatched skill, compassion, and results. Serving clients across Orange County, Los Angeles, San Diego, Riverside, and San Bernardino, Gallo Law is the strength you need when everything is on the line. Free consultations. No fee unless we win.
  • Practice AreasGallo Law is an Elite Accident Law Firm that practices car accidents, truck accidents, motorcycle accidents, pedestrian accidents, Uber accidents, Lyft accidents, and wrongful death cases.
    • Car AccidentsInjured in a car crash? Gallo Law fights for maximum compensation in California car accident cases. Trusted by clients in Orange County, LA, and beyond. Free consultation.
    • Bike AccidentsInjured in a bike accident? Gallo Law fights for cyclists hit by cars, trucks, or rideshare drivers across California. Get experienced legal help from Joseph Gallo. Free consultation.
    • Truck AccidentsHurt in a truck accident? Gallo Law handles complex cases involving big rigs and commercial trucks across California. Get expert legal help from attorney Joseph Gallo.
    • Motorcycle AccidentsMotorcycle accident? Gallo Law helps injured riders recover after serious crashes. Serving Orange County, Los Angeles, and Southern California. Free case review.
    • Pedestrian AccidentsPedestrian accidents, including walking through crosswalks, sidewalks, on the street, in parking lots, on skateboards, on roller skates, on rollerblades, on scooters, and in driveways, can be terrible auto accidents. Gallo Law represents victims to relieve them of the stress, fight insurance companies, and deliver justice and compensation to Gallo Law’s clients.
    • Uber & Lyft AccidentsGallo Law represents people in car accidents involving Uber and Lyft drivers.
    • Wrongful DeathLost a loved one due to negligence? Gallo Law helps California families pursue justice in wrongful death cases. Car, truck, pedestrian & accident fatalities.
  • AboutLearn about Gallo Law and attorney Joseph Gallo—California’s trusted advocate for victims of personal injury, wrongful death, and serious accidents. Decades of results-driven experience.
  • ArticlesExplore legal articles from Gallo Law on personal injury, wrongful death, new California laws, U.S. Supreme Court cases, and key legal updates impacting accident victims.
  • TestimonialsHear from real clients who trusted Gallo after serious accidents and wrongful death cases. See why Californians turn to Joseph Gallo for strength, compassion, and results.
  • ContactInjured in an accident? Contact Gallo Law to speak with California personal injury attorney Joseph Gallo. Free consultations. Serving Orange County, Los Angeles & beyond.

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