Injuries resulting from a car accident can keep individuals from going to work and earning the money that they normally would have received if they did not become injured. Lost wages refers to those wages that were not able to be earned due to recovery time; such as a broken hip causing an employee to be out of work for a few months.
Lost income may involve:
- Lost wages for the period during which an employee can not work.
- Lost earning capacity from a long-term disability from the accident and cannot make as much income as prior to the accident.
- Lost opportunities, such as missing a job interview during recovery.
With proper auto insurance coverage, those who have been injured in a car accident are entitled to 3 months worth of wages if proper insurance coverage is obtained.
Help Is on the Way
If an individual is in a car accident that is not their fault and they become injured, their car insurance policy. Their eligibility depends on the car insurance in question and their and ability to file the claim with the proper information.
These are the insurance overage types to collect lost wages:
- Liability bodily injury coverage: For accident injury due to another driver’s negligence.
- Uninsured/underinsured motorist coverage: If the individual were hit by a diver without insurance or with inadequate coverage.
- Personal injury protection coverage: This policy pays for injuries and lost wages up to the policy’s limits, without regard to fault. Even if the individual caused the accident, they could collect against their own coverage.
In order to receive coverage for lost wages, you need to write a physical letter describing the injuries and how it will keep you out of work, with information on:
- Medical bills.
Check with your car insurance agent if there are specific forms for your physician to fill out. A copy of the police report will also be needed, and your employer will need to verify that you missed work due to injuries.
Calculating Lost Wages
A typical salary based position is determined by the pay rate and amount of time missed. The adjuster may increase the reimbursement if there was missed opportunities such as interviews or opportunities for promotions. This adjustment is difficult to justify, but a car insurance agent can assist in the situation if they are in the know about any lost opportunities. When an employee is not on salary, they will need to prove that they missed appointments or had a decrease in billing invoices during recovery time.
Note that exclusions can occur when the policyholder is given the option to reduce the deductible by removing certain benefits.
If opting out of wage loss benefits to lower costs, this will be stated on the policy; personal injury protection policies will commonly include this provision.
About Daniels Insurance, Inc.
At Daniels Insurance, Inc., we have a unique understanding of the risks that businesses like yours face on a regular basis. With the backing of our comprehensive coverages and our dedication to customer service and quick claims resolution, your business will be fully protected. For more information, contact us today at (855) 565-7616.