In most California personal injury cases, compensation falls into two categories: economic damages and non-economic damages.

Economic damages are often straightforward and include medical bills, lost wages, and other out-of-pocket costs that can be documented and calculated. Non-economic damages, however, are less tangible. They compensate injured individuals for physical, emotional, and personal losses that can have a profound impact on their lives.

At Caputo & Van Der Walde, we understand that pain, suffering, and loss of enjoyment of life are daily realities for people whose lives have been disrupted by serious injuries. Here is what to know about non-economic damages in your California personal injury case.

Economic vs. Non-Economic Damages

California law draws a clear distinction between economic and non-economic damages, which affects both how damages are defined and how liability is assigned. Under California Civil Code section 1431.2, these two categories serve different purposes and are treated differently in personal injury and wrongful death cases.

Economic damages are defined by law as objectively verifiable monetary losses. These are financial costs that can be documented through records, bills, and expert analysis. Economic damages are intended to reimburse injured individuals for the direct financial impact of an accident and may include:

• Medical expenses, including hospital care, surgery, medication, physical therapy, and future treatment
• Lost income and loss of earning capacity
• Loss of employment or business opportunities
• Costs of rehabilitation and in-home or substitute domestic services
• Property damage, including repair or replacement costs
• Loss of use of property
• Burial and funeral expenses in wrongful death cases

Because economic damages are measurable and tied to specific financial losses, they are often easier to calculate and support with evidence. However, insurance companies may still dispute the necessity or value of their coverage.

Non-economic damages, by contrast, compensate for subjective, non-monetary losses that affect a person’s quality of life rather than their bank account. California law defines non-economic damages as losses that are personal and human in nature, including:

• Physical pain and suffering
• Mental suffering and emotional distress
• Inconvenience and loss of enjoyment of life
• Loss of society, companionship, or consortium
• Permanent disability or impairment
• Disfigurement or scarring
• Injury to reputation, humiliation, or loss of dignity

These damages do not come with receipts, but they are no less real. In many serious injury cases, non-economic damages account for the largest share of a claim because they reflect how an injury affects daily life, relationships, independence, and emotional well-being.

California law also treats liability for non-economic damages differently when multiple defendants are involved. Under Civil Code section 1431.2, each defendant is responsible only for their share of non-economic damages, based on their percentage of fault. In legal terms, this means that non-economic damages are several, not joint, and a defendant will not be required to pay more than their share of the non-economic damages attributable to their conduct. Economic damages, however, may still be subject to broader liability rules, depending on the circumstances of the case.

Personal Injury Cases That Involve Non-Economic Damages

Non-economic damages are not limited to any specific type of accident or injury. Instead, they stem from the severity of the harm suffered and its impact on a person’s life. These damages may be considered in any case involving injury, including car accidents, motorcycle collisions, pedestrian accidents, slip-and-fall incidents, defective products, workplace injuries, and medical malpractice.​

For example, a pedestrian struck by a vehicle may suffer permanent mobility limitations that make everyday tasks painful or exhausting. A motorcycle accident victim may experience lasting psychological trauma that makes driving or riding again impossible. In these and many other scenarios, non-economic damages help reflect the full scope of what the injured person has lost.

Proving Non-Economic Damages

Because non-economic damages are subjective, proving them requires careful preparation and persuasive evidence. Unlike economic damages, which bills and records can support, non-economic damages must be demonstrated through testimony, medical opinions, and real-world examples of how an injury has altered a person’s life.

Injured individuals may describe the pain they live with, the emotional struggles they face, and the ways their injuries interfere with relationships, sleep, hobbies, and independence. Family members and friends often provide powerful testimony about changes they have observed, such as withdrawal, mood changes, or loss of physical ability. Medical professionals and mental health experts can explain how injuries cause long-term physical limitations, emotional distress, or psychological conditions.

At Caputo & Van Der Walde, we know how to present this evidence so juries and insurance companies can truly understand the human impact of an injury, not just the numbers on a spreadsheet.

How Non-Economic Damages Are Measured in California

There is no fixed formula for calculating non-economic damages in California. Juries are instructed to use their judgment and award an amount they believe is fair and reasonable based on the evidence.

As a result, non-economic damage awards can vary widely from case to case. In settlement negotiations, attorneys and insurers often rely on informal methods to estimate these damages. One common approach is the multiplier method, which multiplies economic damages by a factor reflecting the injury’s severity and permanence.

Another approach is the per diem method, which assigns a daily value to a person’s pain and suffering and multiplies that amount by the expected duration of those effects. While these methods can be helpful, they are not binding, and the ultimate value of non-economic damages depends on how convincingly the case is presented.

Is There a Cap on Non-Economic Damages in California?

In most California personal injury cases, there is no limit on the amount of non-economic damages an injured person may recover. California law generally allows juries to award full compensation for pain, suffering, and other intangible losses.

There is, however, an exception to this rule for medical malpractice cases. Beginning January 1, 2025, California law limits non-economic damages to $430,000 in medical malpractice cases involving non-fatal injuries and $600,000 in wrongful death cases.

Each year, the maximum recovery increases to account for inflation and fairness over time. In non-fatal medical malpractice cases, the cap increases by $40,000 annually until it reaches $750,000. In fatal cases, the cap rises by $50,000 each year.

How Insurance Companies Handle Non-Economic Damages​

Insurance companies routinely attempt to minimize payout for non-economic damages. While insurers rely on past verdicts and internal data to estimate potential impact, they are also motivated to protect their bottom line. As a result, non-economic losses are frequently undervalued or dismissed entirely during settlement negotiations.

An experienced personal injury attorney can make a significant difference in dealing with the insurance companies to make sure you’re fairly compensated.

Speak With a Trusted California Personal Injury Lawyer for Free

At Caputo & Van Der Walde, we are committed to helping injured Californians pursue full and fair compensation. We understand the complexities of non-economic damages and can present these claims effectively, whether in settlement negotiations or before a jury. If you or a loved one has been injured due to someone else’s negligence, our firm is here to help you seek accountability and justice for everything you have endured.

​Contact us today to speak with a San Jose car accident lawyer by submitting an online form or calling our office at (408) 733-0100 for a free legal consultation.