If you have been injured in an accident caused by someone else’s negligence, you may be entitled to seek compensation for your losses. In California, one of the most common forms of recovery in personal injury cases is compensatory damages. Understanding what these damages include and how they are calculated can help you make informed decisions about your claim. At Wilshire Law Firm, we provide guidance to help accident victims understand their rights and pursue justice under California law.
What Are Compensatory Damages?
Compensatory damages are designed to reimburse an injured person for losses caused by another party’s wrongful actions. The goal is to restore the victim, as much as possible, to the position they were in before the injury occurred. These damages cover both economic losses and non-economic losses.
Types of Compensatory Damages
1. Economic Damages
Economic damages refer to financial losses that can be calculated with documentation. Common examples include:
- Medical expenses: Hospital bills, surgeries, rehabilitation, and future medical care.
- Lost wages: Income lost due to time away from work during recovery.
- Loss of earning capacity: If your injury affects your ability to work in the future.
- Property damage: Costs to repair or replace damaged property, such as a vehicle.
2. Non-Economic Damages
Non-economic damages compensate for intangible losses that do not have a fixed dollar amount. These may include:
- Pain and suffering: Physical discomfort and emotional distress caused by the injury.
- Loss of enjoyment of life: Inability to participate in activities you once enjoyed.
- Emotional distress: Anxiety, depression, or trauma resulting from the accident.
How Are Compensatory Damages Calculated?
Calculating compensatory damages involves reviewing medical records, employment history, and other evidence. Factors that influence the amount include:
- Severity of injuries
- Length of recovery
- Impact on daily life and future earning potential
- Documentation of expenses and losses
Every case is unique, and there is no universal formula. An experienced attorney can help ensure all relevant losses are considered.
Compensatory Damages vs. Punitive Damages
While compensatory damages aim to reimburse victims, punitive damages are intended to punish the wrongdoer for particularly reckless or malicious behavior. Punitive damages are less common and require clear evidence of extreme misconduct. Most personal injury cases focus on compensatory damages.
Why Understanding Compensatory Damages Matters
Knowing what compensatory damages include can help you:
- Evaluate the full impact of your injuries
- Avoid settling for less than you deserve
- Prepare documentation to support your claim
Do You Need an Attorney to Recover Compensatory Damages?
Personal injury claims can be complex, especially when insurance companies attempt to minimize payouts. An attorney can help you:
- Gather and present evidence of your losses
- Negotiate with insurance adjusters
- File a lawsuit if necessary
At Wilshire Law Firm, we offer free consultations and work on a contingency fee basis, which means no fees unless you get paid. Costs and expenses may be your responsibility.
Why Choose Wilshire Law Firm?
- Award-winning legal team with extensive experience in personal injury cases
- Compassionate guidance for accident victims
- Proven track record of advocating for clients across California
Frequently Asked Questions About Compensatory Damages
Are there limits on compensatory damages in California?
California does not cap compensatory damages in most personal injury cases, but certain claims, such as medical malpractice, may have limits on non-economic damages.
How long do I have to file a claim?
In California, the statute of limitations for personal injury claims is generally two years from the date of the injury. Missing this deadline can prevent you from recovering compensation.
Can I recover damages if I was partially at fault?
Yes. California follows a comparative negligence rule, meaning your compensation may be reduced based on your percentage of fault.
Contact Wilshire Law Firm Today
If you have questions about compensatory damages or need help with a personal injury claim, we are here to assist you. Call us 24/7 for a free consultation.

