6 min read time
Summary
30 to 60 days.
Table of Contents
How Long Does It Take to Get Lost Wages After a Car Accident
The amount of time it takes to obtain lost wages following a car accident depends on various factors, including the complexity of your motor vehicle accident case, which insurance companies are involved, and whether your case settles through settlement negotiations or in court.
However, the average insurance payout time for lost wages is around 30 to 60 days after an auto insurance claim is filed, although this 30 to 60-day range will only apply if liability is clear, your employer quickly provides wage documentation, and your case settles by negotiation.
If negotiations fail and your case requires a court verdict to settle, or severe, long-lasting injuries are involved, you may not receive compensation for lost income for over a year or more.
To avoid unnecessary delays in receiving compensation for lost income you sustained due to a car accident, you should:
- Promptly notify your insurer of the car accident
- Submit official medical documentation proving you were or are unable to work to your insurer
- Provide pay stubs and a salary verification letter from your employer
- Consult with an experienced personal injury attorney to learn how you can reach a fair and quick settlement
Who Pays for Lost Wages After a Car Accident?
After a car accident, understanding who is liable for your injuries and damages, including lost wages, is crucial to having a successful claim that results in maximum compensation.
Common parties who may be responsible for paying for your lost income and future earnings after a car accident are explored below.
At-Fault Driver's Insurance Company
If another driver was primarily at-fault for the motor vehicle accident and you live in a fault state, such as Nevada, you'll be able to seek compensation for your lost wages through the other driver's liability insurance by filing a claim with their insurer.
However, before filing a claim with the at-fault driver's insurance company, you should first ensure that:
- Liability is fully determined
- All your damages have been accounted for and calculated into your claim
When filing a claim against another party's insurance company, it's recommended to seek assistance from car accident lawyers as they can handle insurance settlement negotiations, build your claim, and provide support in court if necessary.
Your Own Insurance Company
If you're primarily at-fault for a car accident, live in a no-fault insurance state where personal injury protection is an insurance policy requirement, or the responsible driver is underinsured, you will most likely have to file a claim with your own insurance company or use your uninsured/underinsured motorist coverage to obtain compensation for any lost wages you suffered.
Workers' Compensation
In cases where the motor vehicle accident occurred while you were performing work-related duties, such as delivering packages, transporting passengers, or driving to a client for work purposes, your employer's workers' compensation coverage can provide benefits for lost wages you incurred due to the car crash.
What Should You Include in Your Insurance Claim to Obtain Lost Wages?
To obtain lost wages from an insurance claim, there are specific documents and records that you must include. Otherwise, you may face denial or delays in your accident claim.
Medical Records Proving Injuries
Your insurance claim should include medical records from medical professionals outlining your injuries sustained in the car wreck and stating how they were a result of the car accident and prevented you from working at full or partial capacity.
A doctor's note or a disability certificate stating your inability to work can also be beneficial in justifying time away from work.
Proof of Employment
Provide documentation that proves you were employed at the time of the accident.
Types of documentation that can establish that you were employed include:
- Recent pay stubs
- A letter from your employer verifying your position title, hours, and wages
- Recent tax return (If self-employed)
Salary Verification Letter
A wage verification letter from your employer stating your job title and yearly or hourly salary should be included in your insurance claim.
How to Claim Lost Wages After a Car Accident
Being involved in a car accident while employed can result in missed workdays and lost wages, which can lead to a financial burden if a lost wage claim is not filed correctly.
Steps to properly claim lost wages after a car accident are:
- Promptly Report the Accident: Quickly inform your insurance company of the accident; however, avoid going into specific details about the wreck, as insurance adjusters may use your words against you.
- Seek Medical Treatment Immediately: No matter how you feel after a car accident, you must seek prompt medical treatment and adhere to your doctor's instructions, as lack of medical records or lapses in treatment could create difficulties obtaining a fair settlement for lost wages.
- Gather and Submit Necessary Documents: Prepare and submit any required documents to prove employment and the inability to work, including medical records, pay stubs, letters from your employer, and tax returns.
- Consult with a Personal Injury Lawyer: Schedule a free consultation today with one of our Las Vegas car accident attorneys to receive legal assistance in recovering lost wages and other damages.
Doing the steps outlined above will put you on the right path to not just obtain compensation for lost wages but also for all the damages you sustained in a car accident.
Proving Lost Wages Caused by a Car Accident
In a personal injury claim, to recover lost wages, you must prove your missed work days, salary, and injuries with substantial evidence, as without it, insurance companies or courts may find reasons to reduce your final settlement amount.
Documentation you should have to prove lost wages caused by a car accident includes:
- Medical records outlining how your injuries prevent you from working
- Proof of employment and income
- Employer verification of job and salary
- Documentation of time away from work
In addition to providing the documents outlined above, you should also make sure that the timeline and information are consistent across all your forms and records, as inconsistencies could lead to denial or delays in your claim.
Guide to Calculating Lost Wages After a Car Wreck
The lost wages calculation formula you will use in your claim will depend on multiple factors, including whether you are self-employed or not, how many benefits you are entitled to, and any overtime or bonuses you may receive.
This section will provide information on how to correctly calculate lost wages after a car wreck that you can use to ensure a fair settlement in any lost wage claims.
Step 1: Calculate Your Daily or Hourly Wage
You must first determine your daily or hourly wage.
If you are paid by the hour, multiply your hourly wage by the average number of hours you work in a day:
- Hourly Formula: $20 (hourly rate) * 8 (average hours worked a day) = $160 per day
If you receive a fixed salary every year, then you'll have to divide your annual salary by the number of workdays in a year:
- Fixed Salary Formula: $75,000 ÷ 260 ( average working days in one year) = $288 per day
Step 2: Multiply Your Daily/Hourly Wage by the Number of Missed Work Days
Once you have determined your daily or hourly wage, multiply it by the number of days you missed work due to the car accident.
In the example below, let's say you missed five work days due to an auto accident:
- Hourly Example: $160 * 5 = $800
- Fixed Salary Example: $288 * 5 = $1440
The product of your multiplication operation will be your base lost wages amount, without factoring in any overtime, bonuses, or benefits.
Step 3: Factor in Lost Overtime and Bonuses
If you regularly receive overtime, commissions, or bonuses, you should include the average amount of this additional pay you would have received.
However, by including overtime and bonuses to your lost wages calculation, you must prove the bonuses by providing employment records and pay stubs.
Step 4: Include Lost Benefits
You may also be able to include lost benefits in your lost wages claim, including:
- Sick & vacation days
- Retirement contribution
- Employer-provided bonuses
Consult with your employer or HR department to obtain the total value of these benefits during your time off work.
Calculating Lost Wages If You're Self-Employed
If you're self-employed and want to calculate lost wages sustained due to a car accident, you'll have to determine your average weekly income by using tax returns, 1099 forms, invoices, and accounting records.
Additionally, you should calculate the value of any lost business opportunities that the motor vehicle accident caused.
Obtain the Compensation You're Entitled To
Contact Us Today
Rodney Okano Car Accident Lawyer is a Las Vegas personal injury law firm with over 20 years of experience helping clients obtain maximum compensation following injuries from accidents such as car crashes, worksite injuries, and slips and falls. Over those years, The Rodney Okano Car Accident Lawyer Law Firm has become an experienced law firm that can ensure exceptional results for any of its clients.
