A car wreck suddenly throws your life off track. You may be dealing with vehicle repairs and injuries. If you can’t work, you might also worry about how to recover lost wages after a car accident.
You may get compensation for this lost income by filing a claim. A Dallas car accident lawyer can discuss the specifics of your case and walk you through your options.
Understanding Lost Wages and Your Claim
After a car accident, money worries add a lot of stress. When you can't work because of your injuries, you lose income.
Lost wages are the money you didn't earn because the car accident stopped you from working. It includes more than your regular salary or hourly pay, covering tips, bonuses, commissions, and overtime pay you would have usually received.
Using sick days or vacation time because of your injuries also counts as lost income. Essentially, any income you lost directly due to the accident and your recovery time may be part of your claim for lost earnings compensation.
Who Pays for Your Lost Income?
Several sources might pay for your lost income after a car accident. If the other driver was at fault, their auto insurance company is usually responsible.
If the at-fault driver doesn't have insurance or enough insurance, your own policy might help if you have Uninsured or Underinsured Motorist coverage.
In some states with no-fault insurance laws, your Personal Injury Protection (PIP) coverage pays for some of your lost wages, no matter who caused the accident. A car crash lawyer helps determine the right coverage to claim against after a car wreck.
4 Steps To Document Your Lost Wages After a Car Accident
Proving your lost income is a key part of your claim, and organized records make it easier to show the insurance company how much pay you missed. Follow these steps to document your lost wages after a car accident.
1. Gather Initial Accident Information
Collect all details about the car accident, including the police report, photos of the accident scene, and contact information for any witnesses. The police report often notes if you were injured and taken for medical care, which starts the timeline for your inability to work.
This information supports your overall claim, including your request for lost earnings compensation.
2. Obtain Medical Documentation
Get copies of everything related to your injuries from the car crash: doctor’s notes, hospital records, physical therapy notes, and any future treatment plans.
These documents connect your injuries directly to your time away from work and are needed to prove lost wages.
3. Collect Proof of Employment and Income
You need to show what you earned before the accident:
- Pay Stubs: Gather recent pay stubs to show your regular pay rate and hours worked.
- Employer Letter: Ask your employer for a letter that confirms your job title, pay rate, normal work hours, and the dates you missed work due to the accident. It should also state if you used sick leave or vacation time.
- Tax Returns: Previous tax returns also help show your earning history, especially if your income varies.
4. Special Considerations for Self-Employed Individuals
If you are self-employed, proving lost wages after a car accident requires different documents. Gather your business records, such as tax returns (1099 forms, Schedule C), profit and loss statements, client invoices, and bank statements.
You might also need letters from clients or contracts that show work you missed because of your injuries. Records of appointments you couldn't keep also help demonstrate your lost earnings.
Filing a Claim for Lost Earnings
Once your documents are ready, file a claim for lost earnings. This process involves interacting with insurance companies, unless you’re working with a lawyer who will handle all communications for you.
Notifying Insurance Companies
Inform all relevant insurance companies about the accident and your intent to claim lost wages. This includes the at-fault driver’s insurer and your own insurance company. Do this promptly after the accident.
They’ll assign a claims adjuster to your case who will ask for information. Be honest and provide the facts, but you don’t have to give a recorded statement immediately without legal advice.
Submitting Your Lost Wage Documentation
The claims adjuster might ask for the proof you gathered. Send copies of your medical records, employer letter, pay stubs, tax returns, and other documents showing your lost income.
Keep originals for yourself. Submitting a complete package helps speed up your claim to recover lost wages.
The Claim Review
After you submit everything, the adjuster reviews your claim for lost wages. They’ll check your documents and verify the information. They may contact your employer or doctor.
The insurance company then decides how much they believe your lost wages claim is worth. They might make you an offer, or they might ask for more information. This part of getting your car accident lost pay can take time.
If you hire a lawyer, they’ll handle the negotiations with the insurance adjuster and advise you on all offers.
Calculating the Value of Your Lost Wages Claim
Insurance adjusters and attorneys calculate your lost wages claim (as well as any other damages you’re seeking). Your claim might include wages lost in the past and potential future lost earnings.
Past Lost Wages
Calculating past lost wages is usually straightforward. If you work hourly, multiply your hourly wage by the number of missed hours. If you are salaried, divide your annual salary by the number of pay periods in a year, then multiply that by the pay periods missed.
Using your past earnings as a guide, include any missed overtime, commissions, or bonuses. Your efforts to prove lost wages from the car accident will focus on these figures.
Future Lost Earning Capacity
Sometimes, car accident injuries are severe and have long-term effects. You may not be able to return to your old job, or you might not be able to work as much. This is called lost future earning capacity, and you may claim compensation for it.
Calculating future lost earnings is more complex because it considers your age, occupation, skills, life expectancy, and the nature of your injuries. It often involves looking at what you would have likely earned throughout your career versus what you can earn now.
Since this calculation involves predictions, consider hiring an attorney to assist you in this part of your claim for lost earnings compensation.
Time Limits for Claiming Lost Wages After a Car Crash
You don’t have unlimited time to claim lost income after a car wreck. States have laws called statutes of limitations, which set a deadline for filing a lawsuit to recover compensation, including for your missed pay.
If you miss this deadline, you usually lose your right to get money for your lost wages through the courts. The specific time limit varies depending on your state and the details of your accident.
Call a car accident attorney as soon as possible to determine your state’s deadline and how it applies to your situation. Acting quickly helps protect your ability to recover lost wages after a car accident.
How a Lawyer Can Help You Recover Lost Wages After a Car Accident
Trying to recover lost wages after a car accident can be difficult while you’re also healing. A car accident lawyer can manage this process for you. They understand how insurance companies work and what’s needed for a strong claim.
Accurately Calculating Your Total Lost Income
A lawyer helps determine the full amount of your lost pay (as well as other damages, like injuries or property damage). They include your regular wages, missed overtime, bonuses, or commissions.
If your injuries affect your ability to earn money in the future, they help calculate that lost future earning capacity too.
Gathering All Necessary Evidence for Lost Earnings
Your attorney knows exactly what documents make a strong case for your lost wages claim. They assist you in collecting everything, like detailed doctor’s notes that explain why you couldn't work and official statements from your employer about your pay and missed time.
For self-employed people, they help organize financial records to clearly show the income lost due to the car accident.
Handling All Communications With Insurance Companies
Dealing with insurance adjusters can be stressful and confusing. A car crash lawyer takes over all these conversations. They speak the insurance company's language and protect your rights, making sure you don’t say something that could harm your claim to recover lost income.
Your lawyer will present your case clearly and professionally.
Negotiating a Fair Settlement
Insurance companies often try to pay out as little as possible, but your lawyer is a skilled negotiator who fights for a fair settlement that covers all your lost earnings.
They understand insurers' tactics and know how to counter them to get you the compensation you need for your missed work after the car accident.
Taking Your Case to Court (if Needed)
Most car accident claims, including those for lost wages, settle out of court. However, if the insurance company refuses to offer a fair amount, your lawyer prepares your case for trial. They represent you in court to fight for the compensation you are owed for your lost wages.
Having a lawyer willing to go to court often makes insurance companies more willing to negotiate fairly.
FAQ for How To Recover Lost Wages After a Car Accident
What Is the First Step To Claim Lost Wages After a Car Accident?
The first step to claim lost wages after a car accident is to notify the relevant insurance companies of your injury and inability to work. This usually means contacting the at-fault driver’s insurer and your own if you have applicable coverage like PIP or Uninsured Motorist.
Then, gather your medical records and proof of your income and missed work time.
How Do I Prove My Lost Wages if I Work for Cash?
If you work for cash, you can use bank statements showing regular cash deposits if you deposit your earnings. Affidavits or letters from people who paid you in cash and any invoices or ledgers you kept may also serve as proof.
Can I Claim Lost Overtime or Bonuses After a Car Accident?
Yes, you can usually claim lost overtime or bonuses as part of your effort to recover lost wages after a car accident. You need to show that you regularly earned this income.
Past pay stubs that detail overtime or bonus payments and a letter from your employer confirming you likely would have received them during your absence support this part of your claim.
How Long Does It Take To Get Paid for Lost Wages After a Car Accident?
The time it takes to get paid for lost wages after a car accident depends on the clarity of your documentation, the complexity of your injuries, and how cooperative the insurance company is during negotiations.
Simple claims might settle in a few months, while more complex ones, especially those involving long-term lost earning capacity or disputes, might take much longer, even a year or more if a lawsuit is needed.
What if My Car Crash Injuries Affect My Ability To Earn in the Future?
If your injuries from the car accident permanently affect your ability to earn income, you can claim for lost future earning capacity. This compensation covers the difference between what you would have likely earned if the accident hadn't happened and what you can earn now with your injuries.
Income Interrupted? Let DFW Injury Lawyers Help You Reclaim It
You shouldn't have to bear the financial burden of missed work because of someone else's negligent driving. A trusted Dallas personal injury lawyer at DFW Injury Lawyers is here to help you regain your lost earnings.
You focus on getting better. We'll focus on fighting for the money you deserve.
Call DFW Injury Lawyers today at (972) 440-2320 for a free discussion about your case and how we can help you recover your lost income.