When someone else’s wrongful actions or negligence result in an accident and injure you, a personal injury claim can help you seek compensation for the damages you incurred.
But what damages in a personal injury case are you entitled to recover after an accident? Many people know they can “sue for damages,” but few understand the full scope of what that truly includes.
In this article, you will learn what damages you may be entitled to in a personal injury case and how to maximize your payout to help your overall recovery.
When Am I Entitled to Compensation After an Accident?
You have the right to seek compensation for the damages of an accident if it results from someone else’s negligence. But what exactly is negligence in a personal injury claim?
Every individual has the duty to act in a way a reasonable person would in similar circumstances. For instance, a driver is expected to follow all traffic laws and ensure safety when sharing the road.
As such, negligence occurs when a person neglects this responsibility, causing accidents and injuries to others.
A drunk driver who hits a pedestrian is negligent, for example, since no reasonable person would drink and drive, injuring the pedestrian.
Moreover, the driver should be liable for the damages the pedestrian incurs, such as medical bills, lost wages, and other losses, since the accident directly resulted from their negligence.
How Do I Prove The Other Party Was Negligent?
To win your case, your legal team must clearly prove four critical elements of negligence:
- Duty of Care – The individual had a responsibility to ensure your safety.
- Breach of Duty – They violated that duty.
- Causation – Their actions directly caused your crash.
- Damages – You suffered real consequences, such as physical injuries, lost income, medical bills, emotional distress, and others.
What Types of Damages in a Personal Injury Case Can I Claim?
When you are injured because of someone else’s negligence, you have the right to seek compensation for the pain, loss, and disruption the accident caused in your life. These losses are legally known as damages.
What Are Compensatory Damages?
Compensatory damages are designed to make you “whole” again. They aim to restore what the injury took from you and help you move forward. According to California Civil Code §3333, the law allows injured individuals to recover for all the harm directly caused by another’s actions, whether or not that harm was predictable.
There are two main types of compensatory damages: special, general, and punitive losses.
What Are Special Damages in a Personal Injury Case?
When victims claim compensation for an accident, they often ask, “What are special damages in a personal injury case?” These damages are the financial costs you have faced or will face because of your injury. They are specific, measurable losses often backed by bills, receipts, or pay stubs. Special damages include:
Medical Expenses
- Covers treatment you have already received.
- Includes the treatments and other expenses related to your recovery in the future.
- Needs to be proven by an expert medical testimony to prove the necessity and cost of future care.
- Recovers what was paid or what needs to be paid, not the original sticker price.
When figuring out how much you can recover for past medical expenses, the law doesn’t go by the original bill amount. Instead, it focuses on what was actually paid, or what still needs to be paid. This is because most insurance companies negotiate discounted rates with medical providers, and those lower, agreed-upon amounts are used to calculate your compensation.
If your medical bills were $30,000 but your insurance (like Medi-Cal) negotiated it down to $20,000, then $20,000 is what you may be awarded.
Property Damage
When the accident causes property damage, the compensation should also include that.
For instance, if you are involved in a crash caused by a drunk driver and the impact wrecks your car, you can claim for the vehicle repair or replacement. Additionally, you can also seek compensation if your vehicle is inoperable, making you rent a car for your everyday needs.
Lost Wages and Income
- Covers the money you couldn’t earn because your injury kept you from working.
- Includes not just your paycheck, but also bonuses, benefits, and commissions.
You will need proof, like pay stubs, tax forms, or employer testimony, to show what you lost. If your injury affects your ability to work long-term, experts like doctors and economists may testify to show what your future income would’ve been.
Loss of Career or Earning Potential
If your injury stops you from chasing your career dreams or from working at all, you can also be compensated for that devastating loss.
Imagine a young aspiring chef who suffers a hand injury in a crash and can no longer cook. They may be able to recover what they would have earned, minus what they can earn doing other work, if possible.
What Are General Damages?
These damages reflect the deeply personal, emotional impact of your injury.
Pain and Suffering
Covers physical pain, emotional distress, trauma, and loss of enjoyment in life. Whether you are coping with chronic pain or the anxiety of getting behind the wheel again, this kind of suffering matters, and it’s compensable.
Emotional Distress
Covers the psychological effects of the accident, such as anxiety, depression, fear, or Post-Traumatic Stress Disorder (PTSD).
Loss of Enjoyment of Life
If your injuries prevent you from enjoying hobbies, activities, or day-to-day pleasures you once loved, such as playing with your kids, exercising, or traveling, you may be compensated.
Loss of Consortium
Damages awarded to a spouse or close family member for the loss of companionship, affection, support, or sexual relationship due to your injury.
Disfigurement and Physical Impairment
If your injury left you with permanent scars, amputations, or disabilities that alter your appearance or how your body functions, you may receive compensation for the emotional and social impact.
Inconvenience
Though often overlooked, this refers to the disruption your injury causes in your daily routine, such as needing help with basic tasks, relying on others for transportation, or being unable to care for your family.
What Are Punitive Damages?
While not common in every case, punitive damages may apply if the at-fault party acted with extreme recklessness or intentional harm (for example, drunk driving, street racing, or gross negligence). These damages are intended to punish and deter similar behavior in the future, not merely to compensate you.
Calculating damages is not just about adding up numbers, but about telling your story in a way the court or insurance company understands. A skilled personal injury attorney knows how to document your losses, work with expert witnesses, and make sure you aren’t shortchanged.
The law around damages is complex, and this part of your case could be the most critical. Don’t leave your recovery to chance. Speak to experienced attorneys for personal injuries who can fight for everything you’re entitled to.
What Factors Affect the Value of My Case?
Some factors can either increase or decrease the value of your case, including the following.
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The Severity of the Damage
Not all accidents are the same. Some may leave minor bruises, while others lead to stitches, surgeries, or even lifelong scars. The more severe your injury, the higher your medical bills, and the greater your potential compensation.
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The Long-Term Effects of the Accident
A dog attack can leave invisible wounds too. Do you now avoid parks? Freeze when a dog approaches? Struggle with anxiety, panic attacks, or nightmares? If you’ve lost confidence or feel unsafe in public, your emotional suffering matters, and your settlement should reflect that.
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Liability
Under California’s pure comparative negligence, the person who caused your accident is legally responsible for your injuries. However, if you’re found partially at fault, your compensation may be reduced. For example, if you’re 20% responsible, you can still recover 80% of your damages.
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Evidence to Prove Liability and Damages.
The stronger your evidence, the harder it is for insurers to minimize your claim. Medical records, injury photos, eyewitness statements, and expert opinions can paint a clear picture of what you’ve endured, both physically and emotionally. Your story, backed by facts, is your power.
Are Personal Injury Settlements Taxable?
In most cases, you won’t have to pay taxes on your personal injury settlement. Under IRS rules (IRC §104(a)(2)), compensation for physical injuries, like medical bills, lost wages, and pain and suffering, is usually tax-free. These funds are meant to help you recover, not penalize you.
However, some exceptions apply:
- Punitive damages are taxable since they’re meant to punish, not compensate.
- Interest earned on your settlement can be taxed.
- Emotional distress is only tax-free if it stems from a physical injury.
- Lost wages may be taxable, depending on how they’re classified.
Tax rules around settlements can be tricky. Attorneys for personal injuries can help you understand what is taxable and how to protect the full value of your recovery.
Is There a Limit to What I Can Recover After an Injury?
In most California personal injury cases, there is no cap on what you can recover.
That means you can pursue every dollar you need to rebuild your life, from medical bills to lost income, and even the emotional pain that lingers long after the accident.
However, in medical negligence cases, California does place a cap on non-economic damages like pain and suffering:
- $350,000 cap for personal injury
- $500,000 for wrongful death
These limits will increase slowly each year under California’s Assembly Bill 35. But there’s no cap on economic damages like hospital bills or lost earnings.
If you’re unsure how much your case could be worth, or worried about running into damage limits, an experienced California personal injury attorney can help you understand your rights and fight for everything you’re entitled to.
What Happens If the Accident Leads to Wrongful Death?
If you have lost a loved one due to someone’s negligence, no amount of money can replace that person, but a wrongful death claim can ease the financial burden and give you a sense of justice. Eligible family members may sue for:
- Funeral and burial costs
- Loss of companionship, care, and emotional support
- Loss of financial support that the deceased would have provided
- Medical expenses incurred before the loved one’s passing
Every personal injury case is unique, and what you’re entitled to depends on your circumstances. But one thing is clear: the sooner you act, the better, especially if the victim is already deceased. Attorneys for personal injuries will help you protect your rights, while you focus on grieving and getting your life back on track.
Let us help you understand what you’re truly owed; not just in dollars, but in dignity.
Call The Law Offices of Larry H. Parker today at 800-333-0000 for a free, no-obligation consultation. Let us fight for everything you’ve lost so you can focus on healing what matters most.
When you need an experienced car accident lawyer, we’re here to help. Call today for a no-cost case review.
What Our Clients Say About Us
While many personal injury lawyers may accept your case and build a legal defense, none will champion your cause as fiercely as we do. Our California car accident attorneys are exceptionally well-equipped to create a flawless claim, as affirmed by our previous clients:
“Very great service. I had no complaints at all. Thank you for your service and security knowing things are being handled.” – Van Roberts
Frequently Asked Questions
Accidents may be upsetting and complicated, leaving everyone involved with questions about their rights, obligations, and legal alternatives. Understanding the aftermath of an accident is critical for safeguarding your rights and getting proper compensation.
If you have further questions, we have answered some of the most frequently asked questions about road accidents.
- Can I Switch California Personal Injury Lawyers?
- 6 Things To Consider When Calculating Personal Injury Settlements
- The Three Main Ways an Insurance Company Might Try to Blame You for Your Injuries
- These Are the Steps You Need to Take if You Want to Maximize Your Personal Injury Case Payout
References
California Civil Code §3333. (n.d.). California Public Law. https://california.public.law/codes/civil_code_section_3333
comparative negligence | Wex | US Law | LII / Legal Information Institute. (n.d.). Law.Cornell.Edu. Retrieved May 22, 2025, from https://www.law.cornell.edu/wex/comparative_negligence
Governor Newsom Signs Legislation to Modernize California’s Medical Malpractice System | Governor of California. (2022, May 23). Governor of California. Retrieved May 22, 2025, from https://www.gov.ca.gov/2022/05/23/governor-newsom-signs-legislation-to-modernize-californias-medical-malpractice-system/
Tax implications of settlements and judgments | Internal Revenue Service. (n.d.). IRS. Retrieved October 13, 2025, from https://www.irs.gov/government-entities/tax-implications-of-settlements-and-judgments
