When you’re injured in an accident, the financial fallout can be immediate and overwhelming. Emergency room bills, missed paychecks, and long-term care costs can disrupt your entire life. These are known as economic damages, and they play a central role in most personal injury claims.
Understanding economic damages in Texas is essential to making sure you’re not left paying out of pocket for someone else’s negligence.
At Tawney, Acosta & Chaparro P.C., our El Paso personal injury attorneys represent injured Texans who need real answers and reliable support. We take the time to understand how your injuries affect your finances—now and in the future—and know how to hold negligent parties accountable.
In this guide, we’ll walk you through what economic damages in a personal injury case are, what types are available, and how they’re calculated.
Please don’t hesitate to call (575) 222-1000 or send us an online message today for a free consultation.
What Are Economic Damages in a Personal Injury Case?
Economic damages refer to the tangible expenses that result from an injury. These losses are usually documented through receipts, bills, pay stubs, or expert calculations. Their purpose is to restore the injured person to their financial position before the accident.
Examples of Economic Damages
While every case is unique, these are the most common examples of economic damages awarded in Texas personal injury cases.
Medical Expenses
One of the most significant parts of your Texas economic damages is often the cost of medical care.
These costs include both current and future treatment expenses, such as:
- Emergency room visits,
- Hospital stays,
- Surgery,
- Diagnostic testing (MRIs, CT scans, X-rays),
- Physical therapy,
- Prescription medications,
- Follow-up doctor visits,
- In-home nursing care, and
- Medical devices (crutches, wheelchairs, braces).
For example, if you suffer a spinal injury in a truck accident and require multiple surgeries followed by months of physical therapy, all of those costs can be calculated and included in your claim. Medical bills, treatment plans, and testimony from healthcare providers help support these expenses.
Lost Wages
If your injury forces you to miss work, you can recover the income you lost during that period.
This can include:
- Hourly wages or salary,
- Overtime pay,
- Bonuses or commissions, and
- Paid time off or sick leave used during recovery.
To calculate lost wages, you’ll typically need documentation such as recent pay stubs, W-2s, or a letter from your employer confirming your hours and compensation. Even if you’re self-employed or a freelancer, you may still be eligible for reimbursement with proper documentation of your income history.
Loss of Earning Capacity
If your injuries affect your long-term ability to work, you may be able to recover damages for loss of earning capacity. This applies when you cannot return to your previous job, must work fewer hours, or take a lower-paying role due to physical or cognitive limitations caused by the accident.
Factors used to calculate lost earning capacity include:
- Your age and life expectancy,
- Your work history and skills,
- The severity of your disability or impairment, and
- Expert testimony (such as from a vocational or economic specialist).
For instance, a construction worker who suffers a permanent back injury might not be able to return to physically demanding labor. Even if they find alternate employment, the reduction in income could form the basis for an economic loss claim.
Property Damage
Many personal injury cases include damage to personal property. These damages are especially common in motor vehicle accidents.
Economic damages can cover the cost to repair or replace personal property, such as:
- A vehicle;
- Cell phones, laptops, or other electronics;
- Clothing or safety gear damaged in the accident; and
- Tools or equipment used for work.
You can support your claim with repair estimates, receipts, and insurance appraisals.
Out-of-Pocket Expenses
Economic damages include any incidental expenses arising from the accident or your recovery.
Examples may include:
- Transportation costs to and from medical appointments;
- Hotel stays for out-of-town treatment;
- Home or vehicle modifications (e.g., wheelchair ramps); and
- Childcare costs, if you’re unable to care for your children
Although these costs seem minor, they can add up over time and significantly impact your financial stability. Be sure to track and document every expense.
Funeral and Burial Expenses in Wrongful Death Claims
In fatal accident cases, surviving family members may be eligible to recover funeral and burial expenses as part of their economic damages. These costs can be substantial and are often accompanied by additional claims for loss of financial support.
How Are Texas Economic Damages Calculated?
Calculating economic damages in a Texas personal injury case relies heavily on documentation and expert input. The goal is to present a clear and accurate picture of your financial losses.
Key evidence used to calculate economic loss may include:
- Medical bills and treatment plans;
- Pay stubs, tax returns, and employment records;
- Testimony from doctors, economists, or life care planners; and
- Expert projections of future care needs or lost income.
Texas follows a modified comparative negligence system. If you are found partially at fault for the accident, your damages will be reduced by your percentage of fault.
For example, if you are awarded $100,000 in economic damages but are found 25% at fault, your recovery will be reduced to $75,000. You are barred from recovering damages if you are more than 50% at fault.
Your attorney will work with specialists to help ensure your claim reflects the true scope of your financial loss and, if applicable, your portion of the fault. It’s critical not to underestimate long-term costs, especially if your injury results in chronic pain, disability, or reduced employment potential.
Speak with a Texas Attorney About Your Economic Loss After an Injury
When your financial stability is shaken by an accident, you need a team that understands the full weight of what you’re facing. At Tawney, Acosta & Chaparro P.C., we know how to uncover, document, and present every aspect of your economic loss with precision and purpose.
With a winning trial team and offices across West Texas, our firm fights to recover every dollar our clients lose due to an accident. Our attorneys work directly with you, so you always know who’s fighting for you and what’s happening in your case. We build every claim with trial in mind, ensuring we’re ready to push for maximum recovery, whether at the negotiating table or in the courtroom.
If you’re unsure how to begin your claim or believe the insurance company isn’t offering what you truly deserve, we can help. Contact us online or call (575) 222-1000 today to schedule a free, no-obligation consultation and get the support, strategy, and advocacy you need.
James Tawney
James Tawney is a native of the Southwest dedicated to serving his community. He was born and raised in Arizona, where he attended Northern Arizona University and graduated summa cum laude.
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