Types of Compensation for a Car Accident Lawsuit

Car Accident Lawyer

If you were involved in a car accident that was caused by the other driver, it is very natural to desire compensation for your financial losses. In most cases, the other driver’s insurance should cover your losses. Law requires all drivers to have enough insurance to cover the other people involved in an accident, but not everyone follows this law. If you find yourself in a situation where not all your losses are covered, your main option is to file a lawsuit against that individual. This guide will go over the types of compensation you can receive from a lawsuit.

Types of Damages

In a lawsuit, the compensation is called damages. There are three types of damages that can be received after a car accident lawsuit. These are:

  • Special compensatory damages
  • General compensatory damages
  • Punitive damages

Special compensatory damages are the simplest and the most common. They are essentially compensation for anything with a fixed monetary value. For example, a $1,000 medical bill falls into this category because it has an exact value: $1,000. Special compensatory damage can cover medical bills, damage to your vehicle, lost wages due to an injury, and more. If its monetary value is objective, then it is special compensatory damages and can be recovered in a lawsuit.

General compensatory damages refer to all losses without a fixed value. Most of the time, pain and suffering are the primary types of damages in this category. Suffering physical or emotional pain can still qualify for compensation. In fact, you may even be able to be compensated if the accident somehow caused a divorce. Any type of non-financial loss can qualify. The judge will decide exactly how much losses of this type are worth monetarily.

Punitive damages refer to payment that is assigned to the responsible driver as punishment. Punitive damages are not meant to compensate the victim. After a car accident, punitive damages are usually only assigned if the other driver was drunk. They are meant to punish extremely irresponsible behavior. If the collision was unintentional and both drivers were sober, it is very unlikely that punitive damages will be assigned.

Remember, if you hope to file a lawsuit to receive compensation for your car accident, the very first thing you should do is speak with a car crash lawyer in Indianapolis. Filing a lawsuit may not be necessary, but you will only be able to learn the alternatives by speaking with a legal professional.



Thanks to Ward & Ward Law Firm for their insight into personal injury claims and types of compensation for a car accident.