If you’ve been injured in a car accident in Charlotte, one of the first questions you’ll have is: “What compensation am I entitled to?” The answer depends on two main categories of damages: economic and non-economic. 

At The Law Offices of Jason E. Taylor, we help accident victims in North Carolina understand the full scope of their losses, not just what’s easy to calculate. Here’s what you need to know about the two types of damages you may be able to recover after a car crash. 

1. What Are Economic Damages? 

Economic damages are the tangible, financial losses caused by an accident. They can be proven with bills, receipts, or pay stubs, and are meant to restore your financial stability. 

Examples include: 

• Medical expenses – hospital bills, surgery, medication, rehabilitation, physical therapy 
• Future medical care – ongoing treatment, long-term disability support 
• Lost wages – income missed during recovery 
• Loss of earning capacity – if you can’t return to your previous job or work at all 
• Property damage – car repairs, replacement of personal items damaged in the crash 

Because these damages are quantifiable, they are typically easier to prove in court or during settlement negotiations. 

2. What Are Non-Economic Damages? 

Non-economic damages represent the intangible harm caused by a car accident. These losses don’t come with receipts, but they can have an even greater impact on your quality of life. 

Examples include: 

• Pain and suffering – physical pain and mental suffering caused by injuries. 
• Emotional distress – anxiety, depression, or trauma from the accident 
• Loss of enjoyment of life – being unable to participate in activities you once enjoyed 
• Loss of companionship or consortium – impact on relationships with a spouse or family 

While harder to calculate, these damages are just as real and often make up a significant part of a claim. 

3. Why the Distinction Matters in North Carolina 

North Carolina law recognizes both types of damages, but insurance companies often try to minimize non-economic damages because they are harder to measure. They may attempt to: 

• Offer settlements that only cover medical bills and lost wages 
• Downplay the long-term emotional impact of injuries 
• Use contributory negligence law to bar recovery entirely if they can show you were even 1% at fault 

This makes it critical to have legal representation to ensure both economic and non-economic losses are included in your claim. 

4. How Non-Economic Damages Are Calculated 

Unlike medical bills or pay stubs, there is no exact formula for non-economic damages. Instead, courts and insurers may consider: 

• The severity and permanence of your injuries 
• The impact on daily life and ability to work 
• The emotional toll and trauma from the accident 
• Testimony from medical providers, psychologists, and family members 

Experienced personal injury lawyers will have a sense of what facts jurors will value higher and what facts they likely value lower to get a range for your case’s value. They will then argue the relevant facts and value with the insurance adjuster, and ultimately, you and your lawyer will decide to settle or file a lawsuit and go to trial.  

5. When Punitive Damages Apply 

In rare cases, North Carolina allows punitive damages—meant to punish the at-fault driver rather than compensate the victim. These apply when the at-fault driver acted with gross negligence or willful misconduct, such as drunk driving or reckless racing. 

6. Why You Need a Charlotte Car Accident Lawyer 

Insurance companies may be quick to pay what they can calculate, but reluctant to acknowledge the intangible toll of an accident. A skilled attorney can: 

• Document the full scope of economic and non-economic damages 
• Work with medical and financial experts to project future losses 
• Push back against lowball settlement offers 
• Present compelling evidence of pain, suffering, and emotional harm 

Conclusion 

After a car accident in Charlotte, your losses are more than just numbers on a medical bill. Economic damages restore your financial footing, while non-economic damage acknowledges the lasting impact on your life and well-being. 

At The Law Offices of Jason E. Taylor, we fight to make sure both are fully valued in your case. 

 If you’ve been injured in a car accident, contact us today for a free consultation. 

FAQs 

1. What’s the difference between economic and non-economic damages? 
Economic damages are financial (medical bills, lost wages), while non-economic damages are intangible (pain, suffering, emotional distress). 

2. Which damages are harder to prove? 
Non-economic damages, because they don’t come with receipts or invoices. 

3. Are both types of damages available in North Carolina car accident cases? 
Yes, but recovery may be limited if contributory negligence applies. 

4. How do insurers calculate non-economic damages? 
They may use multipliers or settlement negotiations based on the severity of injuries and the impact on life. Ultimately, they will attempt to adjust the value of your claim downward to save their company money. 

5. Can I get punitive damages in a car accident case? 
Only in cases of gross negligence or willful misconduct, like drunk driving.