What is the difference between compensation and damages in an accident claim?

Compensation and damages are two related terms used in accident law in California that involve financial payments. Compensation is the amount of money paid to an injured person to pay for medical bills, physical therapy, lost wages, and other costs associated with the accident. Damages, on the other hand, are the amount of money paid to an injured person to reimburse them for physical pain, emotional distress, and other losses suffered due to the accident. Compensation is usually awarded for losses that have an exact dollar value, such as medical bills and lost wages. Damages, however, are not always so easily quantified. Factors like emotional distress and physical pain can be hard to measure and assign a dollar value. In such cases, the jury or court must assess the situation and decide on an amount that they feel is fair. When filing an accident claim in California, it is important to understand the difference between compensation and damages. It is possible to receive both, as they both involve financial payments, but the purpose of each is different. Compensation is used to pay for losses that can be easily quantified, while damages are used to reimburse the injured party for items that are more difficult to quantify, such as pain and suffering.

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What is the difference between compensation and damages in an accident claim?

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