If you or a loved one has been hurt in an accident in Texas, your world may suddenly feel like it’s been turned upside down. Medical bills start coming in, paychecks stop arriving, and you may not know how you’re going to keep up. Texas law allows personal injury victims to seek compensation for these losses, known as economic damages.
Economic damages are about more than numbers on a page. They represent the real, day-to-day impact of an accident— the costs that make recovery harder and the financial strain that affects entire families. This guide explains what counts as economic damages in Texas, how they are calculated, and why documenting even the smallest expenses can matter.
What Are Economic Damages?
Economic damages are the tangible financial losses caused by an accident. They’re the costs you can typically measure and prove with receipts, bills, or pay stubs. Unlike non-economic damages—which address the intangible things like pain, suffering, or emotional trauma—economic damages are concrete and often easier to quantify.
Texas courts and insurance companies rely heavily on these numbers when determining compensation in personal injury and wrongful death cases.
What Economic Damages Are Available for Texas Accident Victims?
Economic damages can vary widely depending on the circumstances.
However, the most common examples in Austin personal injury cases include:
- Medical expenses: hospital stays, doctor visits, surgery, rehabilitation, and prescription medications
- Future medical costs: long-term treatment, therapy, or ongoing care you may need
- Lost wages: paychecks you’ve missed while recovering from your injuries
- Reduced earning capacity: long-term changes in your ability to earn a living
- Property damage: repair or replacement costs for vehicles, electronics, or other personal property
- Out-of-pocket costs: travel to medical appointments, childcare, or accessibility modifications for your home
Each of these categories requires solid documentation to show how much the accident has cost you.
How Are Economic Damages Calculated in Texas?
Although financial losses seem pretty straight forward, calculating economic damages for a personal injury is not as simple as adding up bills.
In most cases, economic damages can be calculated by:
- Reviewing financial records: Bills, pay stubs, tax returns, invoices, and receipts
- Consulting medical and/or financial experts: Doctors, vocational experts, and economists may testify about long-term costs
- Projecting into the future: Factoring in how inflation, recovery time, and life expectancy may affect expenses
Insurance companies often push back on these calculations, questioning whether certain treatments were necessary or whether future expenses are realistic. That’s why gathering thorough evidence is essential.
What Economic Damages Can Families Recover in Texas Wrongful Death Cases?
When a wrongful death occurs in Texas, economic damages may be awarded to surviving family members.
These often include:
- Funeral and burial costs
- Loss of the decedent’s income and future financial support
- Loss of household services, such as childcare, maintenance, or caregiving
These financial damages are separate from non-economic damages—like loss of companionship—which address the emotional impact of the loss.
The Hidden Costs That People Forget About
One part of economic damages that often gets overlooked is the hidden, everyday costs of an injury. These aren’t always as obvious as a hospital bill, but they can add up quickly and strain a family’s budget.
Examples include:
- Transportation costs: Gas, rideshares, or parking fees for medical appointments
- Home modifications: Ramps, railings, or bathroom adjustments to accommodate mobility issues
- Hired help: Paying for childcare, housecleaning, or even grocery delivery if your injuries limit what you can do
- Assistive technology: Devices like specialized keyboards, voice recognition software, or mobility aids that can help you return to work
These expenses may not be top of mind immediately after an accident, but they are very real. Documenting them can make a significant difference in the total value of your claim.
Texas Law on Economic Damages
Texas law recognizes economic damages as a key part of personal injury and wrongful death claims.
A few important points to know:
- No cap on economic damages: While non-economic damages (like pain and suffering) may be capped in certain medical malpractice cases, economic damages are not capped in most personal injury cases.
- Proof is critical: Texas Civil Practice and Remedies Code § 41.001 defines damages, and courts expect thorough documentation before awarding compensation.
- Medical malpractice: Texas Civil Practice and Remedies Code § 74.301 sets limits on non-economic damages in medical liability cases, but economic damages do not have that same cap.
Because economic damages are uncapped, proving every expense is often the key to recovering fair compensation.
How Can I Prove Economic Damages in Texas?
Insurance adjusters and defense lawyers are trained to minimize payouts. If you claim an expense without proof, they are likely to challenge it.
To strengthen your case, keep records such as:
- Every medical bill and receipt
- Pay stubs, W-2s, or employer statements showing lost income
- Estimates and receipts for property or vehicle repairs
- Journals or spreadsheets tracking ongoing costs
Even small items like parking receipts or over-the-counter medical supplies should be saved. Over time, these costs can add up to thousands of dollars.
Contact Heaton McLean PLLC for a Free Consultation With an Austin Personal Injury Attorney
With 32 years of combined experience and millions recovered for accident victims, Heaton McLean PLLC is ready to help you recover the compensation you need and deserve.
Economic damages are just the beginning of what you may be entitled to. Contact us to learn more about the kinds of compensation available for accident victims.
Contact our experienced law firm, Heaton McLean Personal Injury Lawyers, at (512) 503-4878 to schedule your free consultation with one of our experienced Austin personal injury attorneys.