Abramson Smith Waldsmith LLP
Treating California’s Injured With Dignity And Respect

How does California calculate damages in an accident?

On Behalf of | Apr 29, 2025 | Car Accidents

After an accident in California, the calculation of damages can significantly affect the outcome of your case. Understanding how the state calculates these damages is key to ensuring you receive fair compensation. 

Economic damages 

Economic damages refer to the measurable financial losses you’ve suffered due to an accident. These typically include medical bills, lost wages, and future medical costs if your injuries are long-term. For example, if you miss work because of an injury, the wages you lose while recovering are part of economic damages. Similarly, all expenses related to medical care—like hospital visits, surgeries, or physical therapy—are included. This helps restore you financially to the position you were in before the accident.

Non-economic damages

Non-economic damages are harder to quantify but equally important. These are intended to compensate for pain, suffering, emotional distress, and loss of enjoyment of life. Juries are tasked with determining a fair amount for these damages based on the severity of the injury and the impact on the injured’s quality of life. While there’s no set formula, a judge or jury will consider factors like the duration and intensity of the suffering.

Punitive damages

In rare cases, punitive damages may be awarded. These are not meant to compensate you for specific losses but to punish the at-fault party for particularly egregious behavior. Punitive damages are awarded when the defendant’s actions were malicious, fraudulent, or grossly negligent, such as in cases of drunk driving or reckless behavior.

Calculating damages requires a thorough evaluation of both tangible and intangible losses. While economic damages are straightforward, non-economic and punitive damages depend on factors unique to each case.