Due to the unforeseeable nature of car accidents, victims are usually unprepared for the financial burden that often follows after a crash.
A car accident can leave you with physical pain and financial strain if you can no longer work while recovering from your injuries.
You may struggle with increasing medical expenses and lost income, but you should know that you may be eligible for financial assistance.
This article explains how to file for lost wages from car accident and how a car accident lawyer might help. Read on to learn more about how to claim what is rightfully yours.
What Are Lost Wages?
In car accident claims, “lost wages” refer to the income you would have earned from your job from the accident to the settlement or judgment date.
You must show that the injuries that kept you out of work were directly related to the car accident to be compensated for lost wages from car accident claims. You must show that these injuries did not result from any other event after the accident.
If your claim is approved, you will get the money you would have otherwise earned had you not missed work when undergoing treatment and during recovery.
If, for example, you stayed off work for two months, you will be entitled to recover the actual amount your employer would have paid you during those two months.
As you go through the claims process, you may encounter the terms “lost earning capacity” and “lost compensation.” These refer to two damages and may be considered separate damages when claiming them.
Lost earning capacity entails any disability that reduces your capacity to work. On the other hand, lost compensation involves not just lost wages but also the financial benefits you would have earned had you not been involved in the accident.
Pay bonuses and other employment perks are examples of lost compensation.
How Do I Gather Proof of Lost Income?
Proper documentation is key to filing a successful lost wages claim after a car accident. Gather the following:
Doctor’s note
You must have suffered verifiable physical injuries before taking time off work. Collect a doctor’s note or disability slip detailing the recommended time to take off work to recover from your injuries.
The note should also contain detailed information about the injury you suffered from the accident.
Paystubs or other wage documents
You will need your paystubs before and after the crash to prove lost wages. If you cannot access them, you can submit your W-2s or tax returns from previous years.
If self-employed, your tax returns or relevant documents from previous years can help prove how much money you would have earned during your recovery period.Such documents include invoices, profit-and-loss statements, bank statements, or receipts.
Wage verification letter
Even with paystubs, you must submit a letter from your employer to verify your employment details.
The letter should show the days you stayed out of work, your pay level, and the hours worked during each pay period.
How Do I Calculate Lost Wages from Car Accident Claims?
Calculating lost wages is easy if you are salaried or an hourly employee- multiply the missed hours by your pay rate. Remember to include overtime, sick days, and vacation time in your calculation.
However, the process is complex if you are self-employed or have irregular working hours. You might have to calculate your daily income by averaging your pay over a specific period, say six months or a year, then multiply it by the days you missed.
A skilled car accident lawyer can help you calculate your lost wages and any other damages owed to you.
Do Insurance Claims Cover Lost Wages?
Where you live often dictates whether insurance covers lost wages. In states with a fault-based system, the at-fault party’s insurance provider usually covers the injured driver’s lost wages.
Under this system, the injured party must file a claim with the at-fault party’s insurer and attach relevant supporting evidence to seek compensation for lost wages. They must include lost wages in the demand letter.
In a no-fault state system, an injured driver relies on their insurance coverage for compensation for lost income, regardless of who was at fault for the car accident.
Most no-fault states require drivers to have personal injury protection (PIP) insurance, which pays for lost earnings and medical expenses.
However, coverage is different across states, so it is crucial to speak to an expert car accident lawyer when filing an insurance claim for lost wages from car accident.
Remember that insurance providers aim to pay the least amount possible, so it is crucial to have a solid case.
How Can a Lawyer Help Me Claim Lost Wages?
Navigating the claims process can be difficult and intimidating, especially when recovering from car accident injuries.
It would be best to have someone to advocate for you since insurance providers have teams of attorneys to protect their interests.
A knowledgeable car accident lawyer understands the legal procedures and has experience representing clients in recovering lost income from auto accidents.
Remember that timing is crucial when filing a lost wage claim. Don’t delay pursuing the compensation you need and deserve.
Can I File a Lawsuit for Lost Wages?
Yes. You can file a lawsuit if the insurance provider denies your claim or offers a low settlement amount. But it would help if you had an experienced attorney at your side.
A skilled car accident lawyer will do everything possible to get you the maximum compensation, even taking your case to court if necessary.
While accidents can be life-changing, they should not compromise your financial security. The first step towards financial recovery is understanding how to claim lost wages from car accident.
Get Legal Help in Recovering Lost Wages from a Car Accident
Presenting your paystubs can serve as proof, but they may be insufficient to collect lost wages. Filing a lost wages claim might entail complex legal issues concerning your medical condition.
To deny your claim, the insurer might argue that you delayed seeking treatment, making your injuries worse. You need an experienced car accident attorney to get the compensation you need.
At Legal Giant, we can connect you with car accident lawyers with a track record of successful claims.
Our partner attorneys are familiar with these claims and know how to counter arguments from cunning insurance companies. They will do everything to get you the compensation you deserve.
Contact us at (855) 740-5024 for a free case evaluation today.
