When a person has suffered injuries as a result of an automobile accident that was someone else's fault, the injured person is usually entitled to damages. Damages is a legal term for the award an injured person obtains after winning a lawsuit. In automobile accident cases, damages are called "compensatory damages."

There are two types of compensatory damages:

• Damages awarded for economic losses;
  
• Damages awarded for non-economic losses.

Non-economic loss consists of those losses that are difficult to quantify. Most non-economic loss is for the "pain and suffering" associated with injuries suffered from the problems or defects associated with someone else's property. Damages awarded for non-economic losses are generally monies determined to compensate for the pain, suffering and inconvenience caused by the automobile accident.

In addition to compensatory damages, the court can also order the payment of additional money to punish the person responsible for the accident, if they caused it on purpose or by driving dangerously, with complete disregard for the safety of others. This type of an award is called punitive damages.