Types of Damages in a Texas Personal Injury Case

An insurance adjuster has sent you a settlement offer, and it lists a single number for your personal injury claim. Texas law recognizes several categories of personal injury damages, and a single figure does not show you which ones the adjuster counted. Until you know what the number covers, you cannot tell whether it is complete.

Signing that offer closes your case for good, even if new medical bills arrive later. Future treatment, lost earning capacity, and damages you have never heard named can all be gone the moment you accept a number that never accounted for them. There is no second settlement once the first one is signed.

At LeMaster Law Firm, we help injured Texans check a settlement offer against every category of damage Texas law allows before they sign it. Founding attorney Jennifer LeMaster served as in-house counsel for an oil and gas company, handling complex transactions and litigation, and then as a partner at an international law firm representing insurance companies. She applies that background to reading an adjuster’s offer for what it left out.

What Economic Damages Can You Recover After a Texas Injury?

You already have bills that came directly from the crash, and Texas law calls this first category economic damages. These are the losses you can point to with a receipt, an invoice, or a pay stub, and you may also see them called special damages.

Economic damages typically include:

• Medical expenses already paid, from the emergency room visit through follow-up care
• Reasonably certain future medical treatment your injury still requires
• Lost wages for the time you have already missed from work
• Lost earning capacity if your injury changes what you can earn going forward
• Property damage, including vehicle repair or replacement
• Out-of-pocket costs such as medication, medical equipment, or mileage to appointments

A settlement offer that only adds up your bills to date has not yet accounted for treatment still ahead of you or income you have not lost yet but will.

What Non-Economic Damages Does Texas Law Recognize?

Not every loss from an injury comes with a receipt attached, and Texas law calls this second category non-economic damages. These damages compensate the harm you cannot itemize on a bill, sometimes called general damages, and they are frequently the largest category an incomplete settlement offer leaves out.

Non-economic damages recognized under Texas law include:

• Pain and suffering connected to the injury itself
• Mental anguish, including anxiety, fear, or emotional distress tied to the crash
• Disfigurement, such as scarring or a visible change to your body
• Loss of enjoyment of life, when the injury keeps you from activities you valued before
• Loss of consortium, a separate claim your spouse may hold for the loss of your companionship and support

Pain-and-suffering damages are harder to reduce to a specific number than a medical bill, but that does not make them any less real or any less recoverable.

When Do Exemplary Damages Apply in a Houston Personal Injury Case?

Most settlement offers stop at economic and non-economic damages, but Texas law recognizes a third category that applies only in specific circumstances: exemplary damages. Whether it applies depends on how the at-fault party behaved, not on how badly you were hurt.

Exemplary damages are not available in an ordinary negligence case. Texas law allows them only when the at-fault party’s conduct rises to fraud, malice, or gross negligence. The person seeking them must also prove that conduct by clear and convincing evidence, a higher standard than most civil claims require (Tex. Civ. Prac. & Rem. Code § 41.003).

This is a narrow exception, not a routine part of a typical car accident or slip-and-fall claim. When exemplary damages do apply, Texas law caps the amount. The cap is the greater of two figures: two times your economic damages plus an amount equal to your non-economic damages up to $750,000, or a flat $200,000 (Tex. Civ. Prac. & Rem. Code § 41.008).

This category rarely shows up in an adjuster’s math. An offer built only from economic and non-economic totals would not reflect exemplary damages, even in a case where the facts support them. If the conduct behind your injury looks intentional, reckless, or deliberately dangerous rather than merely careless, that is worth raising with an attorney before you sign anything.

Does Your Settlement Offer Account for Every Category of Damage?

Before you sign anything, it helps to check the number in front of you against the three types of personal injury damages above, not just the total at the bottom of the page.

Ask yourself:

• Does the offer include every category of documented loss, past and future, not just the bills you have already paid?
• Does it account for the harder-to-price harm the injury has caused you, such as pain, mental anguish, or lost enjoyment of life?
• Does the conduct behind your injury look like more than ordinary carelessness, and if so, has that been reflected in the number?

If you cannot answer one of these questions with confidence, that is a sign the offer may not be complete, and it may be time to bring in outside help. If you have not worked with an attorney before, knowing what to ask a personal injury lawyer during that first meeting can make that conversation more productive.

Frequently Asked Questions About Personal Injury Damages in Houston

How Long Do You Have to File a Personal Injury Claim in Texas?

In most personal injury cases, Texas law gives you two years from the date of the injury to file a lawsuit (Tex. Civ. Prac. & Rem. Code § 16.003(a)). This deadline applies whether your case eventually settles or goes to trial, and missing it typically bars you from recovering damages at all. Because evidence and witness memory fade quickly, speaking with an attorney well before the deadline arrives helps protect your options.

Can You Still Recover Damages If You Were Partly at Fault?

Yes, as long as your share of fault is not greater than 50% under the Texas proportionate responsibility rule (Tex. Civ. Prac. & Rem. Code § 33.001). If you are found more than 50% responsible, Texas law bars you from recovering damages entirely. If your share is 50% or less, your recovery is reduced by that percentage rather than eliminated.

Is Compensation for Pain and Suffering Taxable?

Under federal tax law, compensation you receive for pain and suffering connected to a physical injury is generally excluded from your taxable income. Exemplary damages generally are not, and the treatment can depend on how a settlement is structured and allocated among categories. Because tax rules change and every situation differs, confirming your specific treatment with a tax professional before you file is the safer step.

What If the Insurance Company Denies Part of Your Damages?

Texas law sets standards for how insurance companies handle claims and bars certain unfair settlement practices (Tex. Ins. Code ch. 541). Those protections are strongest when the claim is against your own insurer, so a denial from the at-fault party’s insurer is usually answered by pursuing the underlying claim itself. Either way, an attorney can review the denial against your documented losses to see whether it holds up.

Talk to a Northwest Houston Injury Lawyer Before You Sign That Settlement Offer

You are holding a number meant to cover everything your injury cost, and it is hard to know if it does. We check settlement offers against every category of damages Texas law recognizes, including exemplary damages when the facts support them, so you are not left guessing.

Once you sign, that number is final. Call 832-356-7983 or fill out our contact form for a free review of your offer before you respond to the adjuster.