Hammers Car Accident & Personal Injury Lawyers | October 13, 2025 | Personal Injury
After an accident in Georgia, a victim is typically entitled to recover damages from the at-fault party. In personal injury claims, damages are the financial compensation awarded to the victim to make them whole again. Two primary types of damages may be awarded in personal injury claims: compensatory damages and punitive damages.
Keep reading below to learn all the differences between these two types of damages.
What Are Compensatory Damages?
Compensatory damages may also be referred to as actual damages. These damages are used to compensate victims for the losses they incurred as a result of the accident. Compensatory damages may be further separated into two categories:
Economic Damages
Economic damages are used to compensate victims for the financial or monetary losses they suffered after an accident. There is no limit to the amount of economic damages available in personal injury claims. The higher the victim’s financial losses, the more economic damages that may be awarded.
Some common examples of economic damages available in personal injury claims are:
- Medical bills
- Lost wages and benefits
- Property damage
- Out-of-pocket expenses
- Physical therapy
- Rehabilitation
- Medical equipment
- Home health care expenses
- Future reduced earning capacity
Assigning a specific dollar value to these damages is usually quite straightforward. Their value is equal to the actual value of your losses, which can be proven with bills, receipts, and other relevant documentation.
Non-Economic Damages
Non-economic damages are used to compensate victims for their intangible losses, such as:
- Pain and suffering
- Emotional distress
- PTSD
- Anxiety
- Depression
- Loss of consortium
- Diminished quality of life
- Permanent scarring or disfigurement
- Loss of enjoyment of life
- Loss of reputation
- Loss of love and companionship
Putting a dollar figure on non-economic damages can be challenging, and it often requires the help of an experienced personal injury lawyer. These damages may be worth anywhere from 1.5 to 5 times the value of your economic damages. The more severe your injuries, the higher the value of your non-economic damages is likely to be.
What Are Punitive Damages?
Punitive damages are a special type of non-compensatory damages. This is because these damages are not used to compensate the victim for their losses. Instead, punitive damages are used to punish the defendant for their egregious behavior. The award of punitive damages in a personal injury claim can help deter similar behavior in the future.
Keep in mind that punitive damages are never awarded on their own. They are only granted in addition to any compensatory damages that are awarded in the case. Requiring wrongdoers to pay punitive damages in addition to the victim’s actual damages can be an effective deterrent.
In some cases, Georgia caps punitive damages at $250,000, although there are exceptions to this limit.
When Are Compensatory and Punitive Damages Available?
Another major difference between compensatory and punitive damages is when they are available. Compensatory damages are generally available in all personal injury claims. If the victim successfully proves negligence, they are likely to be entitled to recover compensatory damages for their losses.
Punitive damages, however, may not be available in all personal injury claims. These damages are reserved for cases involving only the most egregious behavior.
According to Georgia law, a victim must prove by clear and convincing evidence that the defendant acted with “willful misconduct, malice, fraud, wantonness, oppression, or that entire want of care which would raise the presumption of conscious indifference to consequences.”
Essentially, a victim must prove that the defendant was aware of the likely consequences of their actions and chose to act anyway.
Contact Our Atlanta Personal Injury Lawyer at Hammers Car Accident & Personal Injury Lawyers for a Free Consultation
The best way to ensure you are getting all the damages to which you are entitled is to seek help from an experienced Atlanta personal injury lawyer. Your lawyer can evaluate all the factors in your case and help you fight for your compensation. Trying to navigate a personal injury claim on your own could cause you to settle for less than what your case is actually worth.
We serve Fulton County and its surrounding areas:
Hammers Car Accident & Personal Injury Lawyers – Atlanta
201 Joseph E Lowery Blvd NW Suite 312,
Atlanta, GA 30314
Open 24/7
(770) 900-9000
Hammers Car Accident & Personal Injury Lawyers – Sandy Springs
5555 Glenridge Con, Suite 975,
Sandy Springs, GA 30342
Open 24/7
(678) 990-7024
Hammers Car Accident & Personal Injury Lawyers – Lawrenceville
265 Culver St S. Suite A.
Lawrenceville, GA 30046
Open 24/7
(678) 626-5067
Hammers Car Accident & Personal Injury Lawyers – Mableton
5701 Mableton Pkwy SW Suite 108,
Mableton, GA 30126
Open 24/7
(706) 480-5487
Hammers Car Accident & Personal Injury Lawyers – Smyrna
2400 Herodian Way Ste#220,
Smyrna, GA 30080
Open 24/7
(678) 922-4497
Hammers Car Accident & Personal Injury Lawyers – Roswell
110 Mansell Cir #111,
Roswell, GA 30075
Open 24/7
(678) 582-8466
About Robert M. Hammers Jr.
Robert M. Hammers, Jr. is the managing partner at Hammers Car Accident & Personal Injury Lawyers in Atlanta. Committed to justice, he represents individuals harmed by negligence, focusing on personal injury litigation.
With over 50 jury trials and $100 million in verdicts and settlements, Rob is known for his strategic thinking and dedication to achieving the best outcomes for his clients. He serves on the Executive Committee for the Georgia Trial Lawyers Association, the American Association for Justice Board of Governors, and the Plaintiff Leadership Committee in complex multi-district and toxic tort litigations, where he advocates for injured individuals and shapes legal strategies.
Robert is also recognized on Justia for his excellence in personal injury law, further highlighting his reputation and commitment to client advocacy.
