Lost wages refer to the income you are missing out on if an injury prevents you from going to work. If you received an injury in a car accident, then your lost wages will count as economic damage you can recover in an insurance claim.
However, it might not be clear exactly who pays for lost wages in a car accident. Understanding this liability will help you get your due compensation as quickly as possible.
Who Is Responsible for Covering Lost Wages?
When you experience a car accident, the at-fault driver is responsible for covering your damages. This includes lost wages as well as any medical bills, property damage and pain or suffering you incur.
However, the at-fault driver usually does not pay for your damages out of pocket. Every driver has a legal requirement to carry at least the minimum liability auto insurance coverage. If the other driver has insurance, you can file a claim with their insurance provider. The insurance company will review your claim and offer a settlement to cover your lost wages and other damages.
Keep in mind that the person filing a car accident claim must prove that the other driver was at fault. This usually means providing evidence that their negligence caused your injuries and related expenses. The other driver is only responsible for covering your damages if you can establish their negligence.
Determining Negligence in a Car Accident Case
To determine if a driver was negligent in a car accident case, insurance adjusters and personal injury attorneys will consider four crucial questions:
- Did the driver owe a duty of care to the person filing a claim?
- Did they violate their duty of care by disobeying traffic laws or driving recklessly?
- Did the claimant suffer economic or non-economic damages in an accident?
- Is there a direct link between those damages and the driver’s violation of their duty of care?
In a car accident case, the “duty of care” is every driver’s obligation to operate their vehicle in a way that reasonably prevents harm to other people. Being reckless, aggressive or distracted while behind the wheel is a clear violation of this duty. However, recovering your damages requires more than proving that the other driver was negligent—you must also prove that you suffered recoverable damages as a direct result of that negligence.
What Evidence Do You Need To Prove Negligence?
There are several types of evidence you can collect at the scene of your car accident to help prove the other driver’s negligence. Your lawyer will conduct a more thorough investigation at a later time, but taking these steps to document the scene will help strengthen your claim:
- Photographing any damage, injuries or skid marks caused during the accident
- Requesting a police report from the officers who investigated the scene
- Getting contact info from witnesses who saw the accident happen
You should also seek medical attention as soon as possible after your accident. Even if you do not feel any pain or injuries from the crash, it is important to get a professional medical opinion on your condition. The medical records can be proof that any injuries you suffered were a direct result of the accident and the other driver’s negligence.
How Do You Know if You Have Lost Wages From an Auto Accident?
If you cannot go to work because you are recovering from a car accident injury, then you likely have lost wages. You are eligible to claim compensation for those lost wages if the accident happened because of someone else’s negligence. You can verify that you are missing income by comparing your typical income records with your income after the accident.
You do not have to use paid time off if you miss work due to an accident that was not your fault. The person who caused the car accident is responsible for covering your lost wages, so you do not have to use your own resources or benefits to cover that time. If your employer tries to pressure you into going to work or using PTO, your personal injury attorney can advocate for your rights.
How Do You Calculate Lost Wages Due to a Car Accident?
The first step in calculating your lost wages is to simply multiply your hourly wage by the total number of hours you missed due to your accident injury. If you work on a salary basis, it may be convenient to first figure your daily or weekly salary and multiply that by the number of days or weeks you missed.
It is important to note that a lost wages claim covers more than just your hourly rate. You can also recover compensation for any bonuses or commissions you would have otherwise earned during that time. You can also recover the value of benefits such as health insurance, retirement contributions or PTO that would typically accrue if you were at work. If there are other financial benefits that you think might apply to your lost wages claim, consult with your attorney to discuss adding them to your settlement demands.
To support your calculations and prove your lost wages, collect documents such as pay stubs or direct deposit records that show your usual wages. Tax returns and other financial documents can also be beneficial, especially if you are self-employed. You should also locate official employment documents that outline your benefits and their monetary values.
Can You Qualify for Lost Wages if You Have No Injuries?
You can qualify for lost wages if you miss work for any reason resulting from an accident caused by someone else, even if that reason is not related to an injury. For example, you might miss work because you:
- Went to the hospital for a post-accident checkup
- Could not drive to work because of damage to your vehicle
- Experienced pain, suffering or emotional distress
- Required therapy or counseling for the psychological effects of the crash
It is entirely possible to sue for a car accident without an injury. There are many types of damages you can recover because of someone else’s negligence. In the field of personal injury law, injuries are actually just one part of the equation. The bottom line is that you deserve to recover your lost wages if another driver’s negligence caused you to miss work.
How Do You File a Claim for Lost Wages?
When another driver is at fault for your accident, you can recover lost wages and other damages by filing a car accident settlement claim with their insurance company. It is always best to exchange insurance information with other drivers before leaving the scene of an accident, but if you did not get this information, your attorney can help you get in touch with the correct insurer.
When you call the insurance company, they should walk you through the claims process and provide all the forms and documents for you to complete. When you submit the claim forms, be sure to include as much evidence as possible to support your claim, as well as records and documentation that demonstrate how much your claim is worth.
Remember that your personal injury attorney can be a constant resource while you are filing a claim. An attorney can even call the at-fault driver’s insurance company for you and complete all the necessary paperwork on your behalf.
What Happens if the Other Driver Cannot Cover Lost Wages?
There are times when the other driver might not be able to cover your lost wages, which usually means they do not have insurance. Even if this is the case, it may be worth suing the uninsured driver. This would mean that you are seeking compensation directly from them, rather than from an insurance company.
If you secure a favorable verdict in court, the at-fault driver will be responsible for compensating you. This can be a positive outcome even if the defendant does not currently have the assets to pay you out of pocket right away. However, it is a good idea to consult with your lawyer to discuss whether going to trial and paying extra court fees is actually worthwhile for your case.
What Can You Do if the Insurance Company Denies Your Claim?
Another situation that can disrupt your recovery is if the insurance company denies your claim. Denials happen when insurance companies think they can get away with not paying the requested settlement. They might assert that you do not have enough evidence to support your claim or that your damages come from pre-existing conditions.
If the insurance company denies your claim, the best thing to do is to work with your legal team to appeal the denial. This may trigger an internal review of the insurance company’s decision. Your lawyer can also advise you on whether it may be worthwhile to sue the insurance company for acting in bad faith.
Be Aware of Lowball Settlement Offers
A claim denial is not the only negative outcome that can happen when you are trying to recover lost wages. It is also possible that the insurance company might offer a much lower settlement than you deserve. Remember that insurers are in the business of making and keeping money, so most will not hesitate to pay less if they believe you will accept it.
How Else Can You Recover Lost Wages?
If you cannot recover lost wages from the at-fault driver’s insurance company, you may need to turn to your own insurance providers for coverage options. These can be strong alternatives if the other driver has no insurance, if there was no other driver, if you were the one at fault or if the other insurance company acted in bad faith.
Uninsured or Underinsured Motorist Coverage
Auto insurance providers in Arizona, New Mexico, Colorado, California and many other states must offer uninsured motorist coverage to all potential policyholders. If you have this coverage on your policy, you can use it to receive compensation for lost wages and other damages if you get into an accident caused by someone without sufficient insurance.
Personal Injury Protection
Personal Injury Protection (PIP) is another type of coverage that you can carry on your own auto insurance policy. It primarily covers medical payments after a car accident, regardless of who is at fault. You can also use it to help cover lost wages, rehabilitation costs and certain other losses related to your accident.
Workers’ Compensation
If your car accident happened on the job, workers’ compensation may cover your lost wages. This only applies if you experienced the accident during work-related duties, such as delivering packages or running errands for the company. Accidents that happen during a daily commute typically do not qualify for workers’ compensation.
You can pursue a workers’ compensation claim during a work-related car accident regardless of who was at fault. If the other driver was at fault, you may also file a civil claim against them. Exploring every option for filing a claim will ensure you get the maximum amount of compensation owed to you.
What Is the Statute of Limitations for Claiming Lost Wages?
The statute of limitations for claiming lost wages after a car accident depends on your state’s personal injury law. At Sargon Law Group, we help with personal injury cases in Arizona and California, where the statute of limitations is two years from the date of the accident. We also represent clients in New Mexico and Colorado, where the statute of limitations is three years.
After the statute of limitations passes, it is no longer possible to file a claim related to the accident in question. Keep in mind that some states also have comparative negligence laws that affect how much compensation you can receive based on your degree of fault. Even if the statute of limitations seems to provide plenty of time, it is a good idea to start your claim early to give yourself the best chance of proving the other person’s complete fault.
Sargon Law Group Can Help You Get Your Lost Wages After a Car Accident
You should not have to feel stressed about missing work and losing income after someone else causes you to have an accident. At Sargon Law Group, we are here to help you understand who pays for lost wages after a car accident. Our car accident attorneys will work to hold the at-fault driver accountable and negotiate with their insurer so you can focus on recovering.
Contact us today for a risk-free case evaluation. Your initial consultation is entirely free, and you only pay us after we win a settlement for your lost wages and other damages.