Economic vs. Noneconomic Damages in Maryland Car Accidents

Car accidents can have a profound impact on victims, leading to physical injuries, emotional distress, and financial burdens. If you’ve been involved in a car accident in Maryland, understanding the types of damages you can claim is crucial for seeking appropriate compensation. These damages are generally categorized as economic and noneconomic damages. Here, we explore the differences between the two, how they are calculated, and what you need to know to maximize your claim.

What Are Economic Damages?

Economic damages refer to tangible financial losses directly resulting from the car accident. These damages are quantifiable and can be calculated using bills, receipts, and other documented evidence. Economic damages aim to compensate victims for the out-of-pocket costs they incur due to the accident.

Examples of economic damages include:

Medical Expenses

• Emergency room visits
• Surgeries and hospital stays
• Physical therapy and rehabilitation
• Prescription medications
• Assistive devices like wheelchairs or crutches

Lost Wages

• Income lost during the recovery period
• Overtime opportunities missed due to injuries
• Bonuses or commissions impacted by the inability to work

Property Damage

• Costs of repairing or replacing your vehicle
• Rental car expenses while your vehicle is being repaired

Future Financial Losses

• Projected medical expenses for ongoing treatment
• Loss of earning capacity if your injuries affect your ability to work long-term

Economic damages are relatively straightforward to prove as long as you keep meticulous records and consult experts when necessary.

What Are Noneconomic Damages?

Noneconomic damages compensate victims for the intangible consequences of a car accident. These losses are more subjective and do not have a direct monetary value. Noneconomic damages address the physical and emotional pain that victims endure due to the accident and their injuries.

Examples of noneconomic damages include:

Pain and Suffering

• Physical pain caused by injuries
• Emotional distress related to the trauma of the accident

Loss of Enjoyment of Life

• Inability to participate in hobbies, sports, or other activities you previously enjoyed

Loss of Consortium

• Impact on relationships with a spouse or family members due to your injuries

Mental Anguish

• Anxiety, depression, or post-traumatic stress disorder (PTSD) stemming from the accident

Noneconomic damages are more challenging to quantify and often require expert testimony or documentation to substantiate the claims.

How Are Damages Calculated in Maryland?

In Maryland, calculating economic damages involves adding up all documented costs related to the accident. For noneconomic damages, however, there is no universal formula. Instead, courts and insurance companies may use multipliers or per diem methods to estimate these damages:

Multiplier Method

• Economic damages are multiplied by a number (usually between 1.5 and 5) to estimate noneconomic damages. The severity of your injuries and the impact on your life typically determine the multiplier.

Per Diem Method

• Assigns a daily monetary value to your pain and suffering and multiplies it by the number of days you’ve been affected.

Maryland’s Cap on Noneconomic Damages

Maryland imposes a cap on noneconomic damages in personal injury cases, but this limit increases annually to account for inflation. The cap is higher for wrongful death cases with multiple beneficiaries.  

Proving Economic and Noneconomic Damages

To build a strong case for both types of damages, consider the following steps:

Gather Evidence

• Medical bills, repair estimates, and pay stubs to document economic losses.
• Journals or personal accounts detailing your pain, suffering, and daily challenges for noneconomic damages.

Consult Experts

• Medical experts can testify about the extent of your injuries and the long-term prognosis.
• Vocational specialists can assess how your injuries affect your earning capacity.
• Mental health professionals can provide insights into emotional and psychological impacts.

Work with an Experienced Laurel Car Accident Lawyer

Navigating Maryland’s complex personal injury laws and negotiating with insurance companies requires legal expertise. An experienced attorney can help ensure you receive fair compensation for both economic and noneconomic damages.

Speak to a Laurel Car Accident Lawyer Today

Recovering economic and noneconomic damages after a car accident in Maryland is essential for rebuilding your life and achieving justice. While economic damages address tangible financial losses, noneconomic damages compensate for the emotional and physical toll of the accident. 

Understanding the distinctions between these types of damages and working with skilled legal professionals can help you maximize your compensation and ensure that you’re fully supported during your recovery. If you’ve been involved in a car accident, don’t wait—seek legal advice from a well-versed Laurel car accident lawyer to protect your rights and secure the compensation you deserve. Contact us right away.