How to claim lost wages from a car accident

An unpleasant consequence of car accidents is injuries. You have to worry about compensation for medical bills and rehabilitation. In addition, injuries force you to miss work and, as a result, not receive the required wages. This can hurt your family budget. Therefore, there are rules and mechanisms for compensating for lost wages due to an accident.

How To Calculate Lost Wages After a Car Accident

For a typical case, getting information from your employer about the missed work time and the wages you could have received during this time is enough. Employers usually agree to provide such information. It is necessary to fill out a form in writing. Having such a form on hand will make it easier to negotiate with the insurance company and show the lost wages.

The calculation is somewhat more complicated for the self-employed, and you will need to use past periods' history to understand the amount of losses.

The easiest way is to collect previous tax returns and compare them with the tax return for the year of the injury. This may not yield the exact amount, but it will be the basis for the calculations.

Types of Wages That Can Be Claimed After a Car Accident

Income can often consist of different types of earnings. Therefore, it is possible to claim compensation for different types of wages in a claim, such as:

• Contract wages
• Hourly wages
• Vacation
• Time off
• Pension benefits
• Health benefits
• Overtime
• Bonuses
• Commissions
• Tips
• Raises

For example, if you used your sick or vacation days to cover absences from work due to an injury sustained in a car accident, you have every right to receive compensation by including them in your claim.

Proving Lost Wages Due to a Car Accident

First, you need to prove that you were unable to work precisely because of the injury you sustained in the car accident. This is where your medical records can help, documenting the extent of your injuries and the time you could not work.

Next, you can move on to building your evidence base for the lost wages themselves. Gather as many different documents as you can to prove your wages. These can include tax returns, pay stubs, contracts, and employment and salary certificates. References from your manager and co-workers who can verify your previous earnings are also helpful. You can also add previous awards, certificates, and other documents proving your work value to the list. To understand the impact of the injury on future earnings, enlist the help of an expert witness, such as a vocational rehabilitation specialist. They can testify about your future earning potential.

Making a Lost Wages Claim

You must file a claim to recover lost wages due to a car accident. These may be insurance claims and/or lawsuits. Depending on your state's auto insurance laws, there may be a specific order in which to file insurance claims.

For example, if you have a PIP policy, you must first contact your insurance company, which must pay up to 80% of your lost wages up to the policy limit. You must file a claim with the at-fault driver's insurance company for full compensation.

Insurance companies are reluctant to part with money, and if you file a claim with an insurance company, you will likely need to go through several steps, such as:

• Filling out an Employment Authorization Form. This is necessary so your employer can provide the insurance company with information about your employment.
• Obtaining an independent medical examination
• Providing medical documentation of the injuries that resulted in the inability to work.

Try to include all the necessary documents with your claim that support the calculation of the claim amount.

Insurance companies will try to deny your claim by citing insufficient evidence of the insured driver's guilt or will only pay for damages they deem sufficiently proven. They may also refuse to pay for future lost wages.

You can file a lawsuit if you do not get the desired result from negotiating with the insurance company. In this case, a judge and jury will determine the degree of guilt and the compensation due. The court will consider all the collected evidence, even if the insurance companies refuse to accept it or think it irrelevant.

Filing a lawsuit does not necessarily lead to a trial. It may show the insurance company that you are serious about your intentions, and the case will be settled before trial.

Who Pays Lost Wages In a Car Accident?

Usually, the at-fault driver and their insurance company are responsible for the financial damages resulting from a car accident. However, payments can come from different sources and different claims.

In states with a no-fault insurance rule, you will receive initial payments for lost wages from your insurance company under your PIP policy. You can seek the remainder of your payments from the at-fault driver’s insurance company or through a lawsuit.

In other states, you must first determine the degree of fault of each party in the accident and understand which compensation the less-at-fault party may be entitled to. However, depending on your chosen policy, you can still collect payments from your insurance.

For example, Maryland has a collateral source rule. This rule prohibits defendants from reducing damages by citing the other driver’s insurance payment. Thus, the plaintiff must receive the full amount owed.

However, this does not mean that the plaintiff will receive double compensation. Insurance companies use the subrogation rule. When a plaintiff wins a case, they only get the difference between the total amount and the amount they have already collected from their insurance. Their insurance company takes the rest to cover the cost of the insurance claim.

How Long Does It Take to Receive Compensation?

Lost wages are usually only part of the compensation in car accident cases. Personal injury cases typically take weeks or months to resolve. It all depends on several factors, such as:

• the seriousness of the case
• the severity of the injuries
• the extent of the damages
• cooperation with the insurance company
• whether the case goes to trial.

Having an experienced car accident attorney can, if not speed up the case, then increase your chances of getting the compensation you deserve.