A personal injury case in Nevada allows an injured individual to seek financial compensation from an at-fault party to be made whole again. A settlement or verdict awarded to reimburse the victim is divided into two types of compensatory damages: economic and non-economic. The difference between these two lies in the type of loss being compensated; one focuses on monetary losses while the other is nonmonetary.
What Are Economic Damages?
Economic or “special” damages refer to the tangible and monetary losses caused by and directly tied to the accident and injury. They are measurable losses that are specific to the individual and calculated using the victim’s related bills and other proof of financial losses.
Common Examples
An accident victim can suffer many types of economic damages in a preventable accident. Serious accidents can lead to great financial hardship as the victim tries to restore his or her life to normal.
Common examples of economic damages in a personal injury claim include:
- Medical expenses, including hospital bills, surgeries, therapies and rehabilitation.
- Lost wages, meaning missed work, reduced hours, sick leave or missed employment.
- Loss of future earning potential due to a long-term or permanent injury (disability).
- Property damage (e.g., motor vehicle in a car accident case, personal belongings).
Economic damages are calculated by adding up all of the actual financial losses suffered by the victim. This is typically based on documentation such as bills, financial records, medical records, employment records and pay stubs. Future costs may need to be estimated with help from a financial or medical expert if the victim has a permanent injury or disability.
What Are Non-Economic Damages?
Non-economic damages in a personal injury case pay a victim for the intangible, nonmonetary and general ways the accident has impacted his or her quality of life. They can refer to the emotional and psychological effects of the incident.
Non-economic damages can include:
- Physical pain and suffering
- Emotional distress
- Mental anguish
- Post-traumatic stress disorder
- Depression or anxiety
- Loss of enjoyment or quality of life
- Loss of companionship or consortium
- Permanent disfigurement or scarring
- Disability
Unlike economic damages, non-economic damages are not calculated using bills. Instead, their value is subjective depending on who is doing the calculating: attorneys, insurance adjusters or a jury. The key factors involved in a non-economic damage award valuation include injury severity, recovery time and personal impact.
Key Differences Between Economic and Non-Economic Damages
Understanding the difference between the two types of compensatory damages awarded in a personal injury claim can make it easier for you to seek the financial compensation you deserve as an accident victim in Nevada. A personal injury lawyer can go over the differences with you in detail during a free consultation for more information.
Tangibility and Evidence Required
The biggest difference is that economic damages are tangible and quantifiable, while non-economic damages are intangible and more emotional or personal for the victim. This can make non-economic damages more difficult to prove. They are often invisible, yet they can significantly affect the victim’s daily life.
Proving non-economic damages may require unique types of evidence, such as:
- Medical records from psychiatric care
- Witness or friend/family testimony
- Impact statements from the victim
- An injury journal kept by the victim
- Photographs of the injuries
Proving economic damages, on the other hand, requires documents and receipts showcasing exactly how many dollars the victim has and will continue to spend to recover from the accident. Compelling storytelling can affect how much a victim receives in non-economic damages, as the value is argued and awarded based on perception rather than calculated by records. For this reason, it can be helpful to hire an attorney with experience demonstrating pain and suffering.
Are There Limits on These Damages?
Nevada state law imposes caps or limitations on damages available in a personal injury case in some scenarios. Under these rules, a plaintiff cannot receive more than the appointed limit on certain damages and in specific types of cases.
The current damage caps are:
- Medical malpractice claims: $510,000 limit on non-economic damages (as of 2025, updated annually for inflation). No cap on economic damages.
- Government claims: $200,000 cap per person and per claim. In addition, punitive damages are not allowed in cases against government agencies.
- Punitive damages: $300,000 limit if the amount of compensatory damages awarded is less than $100,000, or three times the amount of compensatory damages if they are more than $100,000.
A personal injury attorney can help you understand the damage caps that may apply to your case and help you seek the maximum amount available under Nevada law. Your lawyer can help you craft a list of all of your economic and non-economic damages to ensure that nothing slips through the cracks.
Know What You Can Claim in a Personal Injury Case
It is important to go into an insurance claim or personal injury lawsuit in Nevada with an understanding of how much your case is worth. Otherwise, you could be at risk of settling for less than you deserve from an insurance provider.
Insurance companies are practiced in protecting their profits by undervaluing claims. Protect yourself by learning as much as you can about your case with help from an attorney before accepting a settlement offer.
Both Types of Damages Are Vital to Full Recovery
The goal of a personal injury claim is to make you whole again after a harmful accident. This is not possible without seeking compensation for both types of losses that you suffered: economic and non-economic.
It is vital not to overlook either category in your pursuit of fair financial compensation. You may need to hire an attorney to help you calculate and prove your pain and suffering damages, but it is worth it to gain an accurate understanding of the true and complete value of your case.
A Personal Injury Lawyer Can Help Maximize Both
You don’t have to take on a personal injury claim in Nevada on your own, or deal with insurance companies without the guidance of a skilled and knowledgeable attorney. You have the right to hire a lawyer to represent you during the claims process. A lawyer can take over settlement negotiations with an insurance company on your behalf to help you reach your goals.
From the beginning, your attorney will know how much your claim is worth and take steps to fight for maximum value in and out of the courtroom. Although most personal injury cases in Nevada reach settlements, a lawyer will be able to represent you in civil court after filing a lawsuit, if necessary.
To discuss the available damages in your particular personal injury claim with an experienced Las Vegas personal injury attorney for a free initial case review.