July 19, 2004
Damages are categorized as special or general. Special damages consist of all economic (out-of-pocket) losses that can be documented such a medical bills, loss of income and car repair. General damages cannot be quantified by reference to bills or receipts. The most common example of general damages are pain and suffering and emotional distress. In order to promote every individual in California to possess valid car insurance, Proposition 213 states that if your vehicle is not insured and you are involved in an accident, you recovery is limited to special damages. For illustration purposes, if an individual, without insurance, is involved in an accident and there is $2,000 in damages to the vehicle, $1,000 in medical bills, your rent-a-car is $250 and missed work is $400, the most that the insurance company would pay is $3,650. However, if this same individual had valid car insurance, he or she would recover additional money for pain and suffering which are attributable to the car accident.
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