Personal injury cases can change lives in an instant. A car accident, a medical mistake, or a slip on unsafe property can lead to serious injuries, years of pain, financial hardship, and emotional distress. Victims often seek compensation to cover medical expenses, lost wages, and the suffering they’ve endured. Pursuing a personal injury claim helps recover damages and ensure accountability from the at-fault party. But how much compensation can they receive? Many states impose limits—also known as “damage caps”—on how much plaintiffs can recover in certain cases.
These caps vary by state and type of damage. In some cases, they restrict compensation for pain and suffering, while in others, they apply to all non-economic damages. Understanding these limits helps personal injury victims set realistic expectations and ensures they receive fair and just compensation under the law. A personal injury attorney can provide legal expertise to help evaluate your potential compensation and navigate the legal process.
Types of Damages in Personal Injury Cases
Before diving into state-specific limits, it’s crucial to understand the types of damages available in personal injury claims:
Economic Damages: These cover measurable financial losses, such as medical bills, rehabilitation costs, lost income, and property damage. These are rarely capped, allowing injured parties to recover full losses.
Non-Economic Damages: These compensate for pain, suffering, emotional distress, and loss of enjoyment of life. In some jurisdictions, the amount of non-economic damages is limited to ensure fair damages are awarded.
Punitive Damages: Awarded in cases of extreme negligence or intentional misconduct, these are meant to punish the wrongdoer and deter future misconduct.
While economic damages are generally uncapped, many states impose limits on non-economic and punitive damages. Below, we explore the maximum compensation limits in California, Nevada, and Colorado.
Maximum Compensation Limits in California
California law sets specific compensation limits for medical malpractice cases but does not restrict most personal injury settlements. This allows victims of general injury cases to pursue compensation without statutory limits.
Compensation Limits in Medical Malpractice Cases
Cap on Non-Economic Damages: As of January 1, 2023, California limits non-economic damages (pain and suffering, emotional distress) in medical malpractice cases.
Non-fatal cases: $350,000 (increases by $40,000 annually until it reaches $750,000).
Wrongful death cases: $500,000 (increases by $50,000 annually until it reaches $1,000,000).
Legal Reference: California Civil Code Section 3333.2
No Cap on Economic Damages: Victims may recover full medical expenses, lost wages, and future care costs.
Punitive Damages: There’s no fixed limit on punitive damages, but courts require them to be reasonable and proportional to the harm caused.
Legal Reference: California Civil Code § 3294
Compensation Limits in General Personal Injury Cases
California imposes no statutory limits on damages in general personal injury lawsuits, such as those involving a car accident, product liability, or slip-and-fall cases. Victims may recover both:
Special (Economic) Damages: Covers tangible losses, including:
Medical expenses
Lost wages and future earnings
Property damage
Rehabilitation costs
General (Non-Economic) Damages: Covers intangible losses, such as:
Pain and suffering
Emotional distress
Loss of enjoyment of life
Legal Reference: California Civil Code § 3281
In cases of insufficient insurance coverage, injured parties can pursue additional compensation through underinsured motorist benefits, umbrella policies, or the at-fault party’s personal assets.
Maximum Compensation Limits in Nevada
Nevada law places caps on damages in certain personal injury cases, particularly medical malpractice claims. However, in personal injury cases, there are no limits on compensatory damages, and punitive damages have specific restrictions. Understanding these limits helps injury victims seek appropriate compensation.
Compensation Limits in Medical Malpractice Cases
Cap on Non-Economic Damages: Nevada limits non-economic damages (such as pain and suffering and emotional distress) in medical malpractice cases to $350,000. This cap applies regardless of the number of plaintiffs, defendants, or legal theories of liability. However, the cap will increase annually by $80,000 starting January 1, 2024, until it reaches $750,000 in 2028. Beginning January 1, 2029, the cap will continue to increase annually by 2.1% to account for inflation.
No Cap on Economic Damages: Victims can recover the full amount of medical expenses, lost wages, and future care costs without any statutory limit.
Punitive Damages: Nevada generally prohibits punitive damages in medical malpractice cases unless the plaintiff can provide clear and convincing evidence that the defendant acted with fraud, malice, or intentional misconduct.
Legal Reference: Nevada Revised Statutes (NRS) § 41A.035
Compensation Limits in General Personal Injury Cases
For most personal injury cases—such as car accidents, slip and fall, and defective products—Nevada does not impose caps on economic or non-economic damages. However, punitive damages are subject to statutory limits:
Punitive Damages Cap:
If compensatory damages are $100,000 or more: Punitive damages are capped at three times the amount of compensatory damages.
If compensatory damages are less than $100,000: Punitive damages are capped at $300,000.
Exceptions (No Cap Applies): The cap does not apply in cases involving:
Defective products (manufacturers, distributors, or sellers)
Bad faith by an insurance company
Discriminatory housing practices
Environmental harm (toxic, radioactive, or hazardous material exposure)
Defamation claims
Legal Reference: Nevada Revised Statutes (NRS) § 42.005
Maximum Compensation Limits in Colorado
Colorado law imposes statutory limits on personal injury damages, including both medical malpractice and general injury claims. Recent legislation has significantly increased damage caps effective January 1, 2025, to account for inflation and fairness concerns.
Compensation Limits in Medical Malpractice Cases
Cap on Non-Economic Damages: Currently capped at $300,000, but will increase to $875,000 by 2029, with inflation adjustments every two years thereafter.
Total Compensation Cap: The maximum total recovery—economic and non-economic combined—is $1 million, but the court may allow a higher recovery of economic damages if the cap is unfair.
Punitive Damages: Allowed for fraud, malice, or willful misconduct. Generally limited to an amount equal to compensatory damages, but the court may increase this if the defendant continues wrongful conduct during the case.
Legal Reference: Colorado Revised Statutes (C.R.S.) § 13-64-302 (as amended by H.B. 24-1472)
Compensation Limits in General Personal Injury Cases
For non-medical malpractice cases (e.g., auto accidents, premises liability), damage caps have also increased:
Cap on Non-Economic Damages: Will rise to $1.5 million as of January 1, 2025, eliminating the previous tiered limits (~$642,180 to $1.28 million). Adjusted for inflation every two years.
No Cap on Economic Damages: There is no statutory limit on economic damages, such as medical expenses, lost income, or future care.
Punitive Damages: Generally capped at the value of compensatory damages, unless willful and wanton conduct continues during litigation.
Legal Reference: Colorado Revised Statutes (C.R.S.) § 13-21-102.5 (as amended by H.B. 24-1472)
Why Compensation Caps Matter
Compensation caps can significantly impact how much an injured party recovers. These limits also influence settlement offers and whether to file a civil suit. While they help control costs for insurance policies, they may restrict justice in cases involving catastrophic injury or wrongful death.
Key Takeaways:
Personal injury law varies by state, and compensation caps play a critical role.
Economic damages are rarely capped, allowing full recovery.
Non-economic damages often face state-imposed limits.
Courts award punitive damages only with strong evidence.
Knowing the insurance policy limits of the at-fault party remains essential.
If limits are low, consider pursuing additional avenues like an umbrella policy or accessing the at-fault party’s personal assets.
Quote court rulings that challenged compensation limits.
Case: Ferreira v. Wyckoff Heights Medical Center
Issue: The plaintiff challenged New York’s certificate of merit requirement, arguing that it unfairly limited access to compensation in medical malpractice cases.
Ruling: The New York Court of Appeals held that failure to comply with the certificate of merit requirement could result in dismissal but allowed flexibility in certain circumstances. While the ruling upheld procedural barriers, it highlighted concerns about access to justice for malpractice victims. This case reinforced the importance of procedural compliance in medical malpractice claims.
Case: Watts v. Lester E. Cox Medical Centers
Issue: A medical malpractice victim challenged Missouri’s statutory cap of $350,000 on non-economic damages, arguing it violated the constitutional right to a jury trial.
Ruling: The Missouri Supreme Court ruled that the statutory cap under Mo. Rev. Stat. § 538.210 violated the constitutional right to a jury trial and declared it unconstitutional in Watts v. Lester E. Cox Medical Centers. The court stated that the cap interfered with the jury’s ability to determine damages in medical malpractice cases. However, in 2015, Missouri lawmakers passed Senate Bill 239, which re-established a cap on non-economic damages by creating a new statutory cause of action for medical malpractice, effectively reinstating the limits.
Seeking the Maximum Compensation You Deserve
If you or a loved one has suffered serious injuries, you deserve fair and just compensation. Navigating insurance coverage, understanding policy limits, and negotiating with the other driver’s insurance can overwhelm anyone. An experienced personal injury attorney provides the legal representation and negotiation skills needed to secure a favorable outcome.
At Bourassa Law Group, we aggressively pursue compensation promptly. We collect witness statements, present strong evidence, and challenge unfair settlement offers to ensure you receive the most compensation possible. We know every case has specific circumstances that can substantially impact your claim.
Don’t wait. If you’ve suffered serious injuries, get immediate medical attention and contact us for a free consultation. Whether you’re dealing with driver’s insurance, facing low insurance policy limits, or unsure of how much compensation you deserve, we can help. Let us fight for your higher settlement and guide you through the entire process.
1-800-870-8910