Although car accidents can happen instantly, the road to recovery from the damage caused can be long and challenging. Many crash victims find themselves suffering from painful injuries and unable to work to support themselves and their families while they recover. During this time, it’s normal to have questions about your rights and options. Where can I get financial support while I’m injured and not working? How long does it take to get lost wages from a car accident? Can I get paid for everything that I lost? What do I have to do to receive the money?
In this blog post, we’ll answer these questions and explain what Kentucky accident victims should know about the timeline and process of recovering lost wages after a crash.
What Are Lost Wages From a Car Accident?
“Lost wages” refers to the compensation and benefits you could not earn because of your injuries in a crash. This can include:
- Regular pay—salary or wages from your typical work hours that you would have earned if not for your injury, including expected overtime pay;
- Paid time off—sick leave or vacation days used to cover your time recovering;
- Commission—employees who make a living through sales could claim additional compensation for lost commissions;
- Raises or bonuses—if you were on track to receive a raise or bonus based on your performance during the period you missed, a wage claim could also factor in that missed compensation; and
- Other benefits—lost benefits regularly provided by your employer, such as retirement contributions or health insurance.
In some cases, lost wages can also include future unearned income if a victim’s injuries prevent them from returning to their previous job. For example, a construction worker who suffered debilitating spinal damage in a car accident may not be able to continue to work in their physically strenuous job safely. If they must find lower-paying, sedentary employment, the former construction worker could claim additional compensation for their reduced earning capacity.
Who Pays for Lost Wages in a Car Accident?
In Kentucky, the primary source of compensation for lost wages is your personal injury protection (PIP) insurance. PIP offers reimbursement for critical needs, like medical bills and lost wages, after a crash, regardless of who was to blame. Under state law, all drivers are required to carry PIP coverage unless they specifically opt out in writing. If you’re in an accident, you can file a claim with your PIP policy to seek compensation for income lost while out of work. Who pays for lost wages in a car accident can depend on the specifics of your case, but typically, your PIP insurance will cover a portion of the wages you missed while recovering. Importantly, PIP plans generally cover only the earnings you missed out on while recovering. Reduced future earnings aren’t included. After you reach the PIP limit, the remainder of the unpaid lost wages will become part of the liability claim against the driver that caused the injury, or potentially an applicable policy of uninsured (UM) or underinsured (UIM) coverage.
How Long Does It Take to Get Lost Wages from a Car Accident?
The timelines for wage compensation can vary widely depending on the facts of the case and their complexity. The amount of time it takes to recover can also vary depending on the type of claim you pursue. General timelines can be broken down as follows.
PIP Insurance Claims
PIP coverage aims to provide accident victims a relatively prompt way to get partial compensation for lost wages. Once your insurer has all the required documents, it should process the claim and arrange for you to receive wage reimbursement shortly after. This often takes between 30 to 60 days after claim submission, but some carriers will be faster than that.
Personal Injury Claim or Lawsuit
Beyond what PIP can provide, the remainder of lost wages are part of the liability claim (against the person that caused the injury). Since this is a single lump sum payment, carriers will not pay the lost wage portion until there is an agreement on the total settlement. This often requires waiting until the injuries are fully understood and the treatment history is established. There are many variables that determine when this can be done. Make sure to hire an EXPERIENCED lawyer to make these decisions. You will want/need fast results, but how much compensation are you willing to forego in order to get some help now? These can be difficult decisions that can have a long term impact on your financial situation.
When the insurance company does not offer a fair settlement, your next option is to take their insured to court to recover everything you are entitled to, including your lost wages. If you settle quickly, you could receive your compensation within a few weeks or months. However, if you need to go through the litigation process and participate in a trial, it could take years to resolve your personal injury lawsuit and claim potential compensation.
How to Claim Lost Wages From a Car Accident
Recovering lost wages after a crash generally involves the following steps:
- Calculating lost wages. Gather pay stubs, W2s, tax returns, and other documents that can verify how much income you lost while out of work. You can also ask your employer for a statement summarizing your wages, expected benefits, and missed work days.
- Gathering additional evidence. Collect medical records and other documentation confirming the extent of your injuries.
- Submitting a PIP claim. File your claim with your insurer or Kentucky court before the given deadline.
- Responding to queries. An insurer may request additional information or documentation. Keep in touch and confirm they’ve received any supplementary material.
- Hire an experience Kentucky Injury lawyer. You are not required to hire a lawyer to represent yourself, but these claims and cases can get very complicated. Unless you have unique experience in the field, it is advisable to consult with an attorney that handles these cases.
- Negotiation. If you hire an attorney, they will establish communication with the insurance company and begin laying the groundwork for getting you a fair settlement that includes all your lost current and future wages. An experienced lawyer understands the need to carefully evaluate all aspects of the case and to know where the strengths and weaknesses are found. A good lawyer, that is experienced and diligent, can make a huge difference on the outcome of your case.
- Filing a lawsuit. If you can’t reach a settlement, you’ll file a formal lawsuit. The lawsuit process includes a period of evidence gathering and culminates in a trial where a judge or jury will determine how much you’re entitled to.
At any point in the process, many accident victims benefit from consulting with a legal professional. A Kentucky personal injury lawyer has the training to accurately evaluate and calculate your lost wages and lost earning capacity. While you recover, they can help gather and organize the evidence needed for your claim. If your claim is denied or delayed, they can fight for your rights and support you in your next steps to seeking your compensation.
McCoy & Sparks: Trusted Advocates for Your Recovery
Recovering lost wages after a car accident can be a stressful and time-consuming process, especially when you’re already dealing with painful injuries and medical bills. However, you don’t have to take on these burdens alone. If you’ve been hurt in a car accident in Kentucky, the attorneys at McCoy & Sparks can help you get your life back on track. Whether you’re dealing with lost wages, medical bills, or other challenges, our team of award-winning personal injury lawyers is prepared to fight for your rights and advocate for the best possible outcome. Contact our office to schedule a free consultation today.