A car accident resulting in injury tends to have a snowball effect; hospital stay, recovery time, surgery if necessary and extensive bills for all of the above are just a few of the problems with which you might have to contend. Another is lost wages from missed work. This can have lasting damage on your finances if not fully compensated, but your options to do so are not limited; one can be to sue the responsible party.
How Can I Calculate My Lost Wages?
This can largely depend on what type of job you have and how you are paid. If you work in a full-time salaried position, this calculation is rather simple. If you work on an hourly basis or your salary is largely dependent upon commission, it’s more difficult to calculate an exact figure.
If you have kept the same job and the same earnings, you could show your previous year’s tax return for an accurate estimate on how much you’re owed. If you have been working consistently before the accident, copies of recent pay stubs would also suffice. But if you have the type of job where earnings change from week to week depending on contracts, commission or the general scope of your work, you’ll need to show what you missed while you were away.
This is especially true if you are self-employed or work on a freelance basis. Showing proof of assignments and work you missed, the contract agreement for said work and/or what you had earned on similar projects in the past will all be important.
Wage loss doesn’t just include what you did miss, but also what you might have missed; future earning capacity and lost opportunities (such as a raise or promotion) can very well be included in your claim if you can verify them. Accurate calculation of lost wages depends on proper documentation; you’ll need:
- Physician’s letter, describing the extent of your injuries, medications prescribed, suggested recovery and the total length of time you must miss work.
- Employer’s letter, stating that you are in fact an employee there, and that you did indeed miss all of that time from work.
- A copy of the police report.
The aforementioned paperwork, such as tax returns and previous pay stubs, will also be crucial for documenting your wages.
Wage Loss Insurance
It’s not a guarantee that your car insurance plan covers lost wages due to missed work. This usually happens if you choose the option with the lower deductible. Typical liability, uninsured motorist and personal injury protection plans will cover for lost wages, but as always, read the fine print to be certain.
Liability and uninsured motorist plans will cover 100 percent of lost wages. Personal injury protection can be very important, because even though it will only cover 80 percent of lost wages, it does this regardless of whether or not you were at fault.
In the event of a car accident, missing work can seriously hinder your ability to pay your medical expenses. Filing a lawsuit or claim for compensation against the responsible party can help you recoup what you had lost.