Wage Loss In Personal Injury Auto Accident Cases

Auto Insurance Policies That Cover Wage Loss

If you lose time at work due to an auto accident injury, you may recoup lost wages via the following two auto insurance policies:

• Personal injury protection (PIP), or what many call no-fault insurance. Under this coverage you'll be protected for lost wages regardless if your negligence caused the car accident. Currently this coverage is required in 13 states and DC. In all other states PIP is either offered as an option or unavailable.

• Bodily injury liability insurance will cover you for lost income provided you were not at fault. Under this scenario, you would file a lost wages claim with the negligent drivers car insurance company.

Information Needed When Filing for Lost Wages

You will need to provide the presiding insurance company with documented evidence of your lost wages due to injury. This requires submitting the following evidence:

• Proof of your injuries. This can be in the form of a letter from your physician, describing your injuries and the extent to which they prevented you from working.

• Documented proof of your missed time at work and subsequent lost wage total. In most situations, you'll need a letter from your employer, on company letterhead, confirming your lost wage amount. If the injury causes long-term ramifications, be sure to also document your lost-earning potential as well.

Depending on the car insurance company, the above evidence might not be enough. The insurance company's claims adjuster may request an interview with your boss or manager. Or maybe seek permission to review your medical records, past and present.

If You're Self-Employed

Providing proof of lost wages is more difficult if you're self-employed or say you're a real estate agent whose income is commission based.

In either scenario, you would instead have to provide copies of your tax returns. Depending on the auto insurance company this may require providing anywhere from one to five previous tax return statements.

In addition, just like described above, you would also need to provide evidence of your car accident injuries.

Consider Hiring a Personal Injury Attorney

If you don't feel you're being offered just compensation, you may want to consider hiring a personal injury attorney.

Insurance companies will often use their experience to limit the settlement amount, but you can counter the "experience advantage" with representation. A personal injury lawyer will use his or her experience to level the playing field, increasing your odds of receiving a fair settlement.