A car accident can leave you with more than just physical injuries—it can also cause significant financial strain, including professional harm. One of the biggest financial burdens accident victims face is lost income due to time away from work. If your injuries prevent you from returning to work temporarily or permanently, you may be entitled to compensation for lost income.
Don’t seek compensation for lost wages yourself. Allow an experienced San Diego car accident attorney (with ample time, energy, and resources) to seek compensation for you. Their negotiation history, legal team, and ability to file a lawsuit prepare a lawyer to lead your case effectively.
What You Need to Know About Lost Income and Car Accidents
Lost income refers to income you would have earned if the accident had not occurred. That said, the idea of “lost income” is not quite that simple. Here are some considerations to weigh as you look for a car accident lawyer to represent you.
Every Accident-Related Loss That Might Qualify as “Lost Income”
Lost income goes beyond just missed paychecks, though those also count toward your case value. You may be eligible to claim compensation for:
- Hourly or salaried income, including any income you lose because you were unable to work
- Bonuses and commissions, If you missed out on work-related incentives or sales commissions
- Overtime pay, if you typically work overtime but were unable to because of injuries
- Self-employment income, as contractors and other self-employed individuals deserve fair compensation after a car accident, too
- Vacation and sick leave, if you had to use paid time off (PTO) because of the accident
- Future lost earnings, if your injuries prevent you from returning to work or limit your ability to earn the same income as before
Many accident victims don’t realize they can claim more than their base salary. A car accident lawyer can help identify all potential income losses you may be entitled to recover.
How to Seek Compensation for Lost Income
Filing a lost income claim requires strong evidence and documentation. Insurance companies will not compensate you automatically, so you must take the right steps to prove your claim. These are steps that your car accident attorney will take on your behalf, though they may need some assistance from you.
Step 1: Get Medical Documentation
A doctor must verify your injuries before you can claim lost income. A medical professional should:
- Diagnose your injuries and provide a treatment plan
- Confirm your inability to work and estimate how long recovery may take
- Provide written medical reports stating that your injuries are preventing you from working
Your attorney will likely have extensive relationships with medical professionals, which is critically important.
Without adequate medical documentation, insurance companies may deny your lost income claim, arguing that your injuries are not severe enough to impact your ability to work.
Step 2: Gather Employment Records
You will need proof of your usual income and income before the accident to show how much money you lost. Your attorney will gather the following:
- Recent pay stubs or direct deposit records showing your earnings
- A letter from your employer confirming your job role, salary, and the time you missed
- Tax returns (for self-employed individuals) to establish past income trends
The more detailed your employment records are, the stronger your lost income claim will be.
Step 3: File a Claim with the At-Fault Driver’s Insurance
If another driver was responsible for the accident, their liability insurance should cover your lost wages. To file a claim:
- Contact the at-fault driver’s insurance company
- Submit your medical records, employment documents, and proof of lost income
- Negotiate a fair settlement for all lost earnings and future lost earnings
Your attorney will take over the claims process when you hire them. Insurance adjusters may offer a lower amount than you deserve, so it’s important to have a lawyer handle negotiations.
Step 4: File a Claim With Your Own Insurance Provider
If the at-fault driver is uninsured or underinsured, you may need to file a claim with your own insurance policy under:
- Personal Injury Protection (PIP) which generally covers medical costs and lost income regardless of fault (available in no-fault states).
- Uninsured/Underinsured Motorist Coverage (UM/UIM), which is critically important considering how rampant uninsured driving is across the United States.
Your insurance provider may not handle your claim in good faith despite all the premiums you have paid. Your lawyer will be prepared for any bad-faith tactics any insurance company uses.
Step 5: File a Lawsuit, If Necessary
Lawsuits are not typically necessary in car accident cases. Though the process is not always easy, those involved in civil cases are typically able to reach a settlement agreement.
However, car accident lawsuits happen. Your attorney may advise you to file a suit if the liable parties do not offer the compensation you deserve.
More Accident-Related Damages You May Deserve Compensation For
As car accident lawyers know well, lost income is far from the only damage that collisions cause. You might also be facing:
Past and Future Medical Expenses
Medical costs are often the largest financial burden after an accident. You can seek compensation for the cost of:
- Emergency room visits
- Hospital stays
- Doctor’s appointments (including specialist appointments)
- Surgical procedures
- Rehabilitation
- Physical therapy and chiropractic care
- Prescription medications
- Medical equipment (wheelchairs, crutches, braces, etc.)
- Long-term care or home health services
If your injuries require ongoing treatment, you can also claim future medical expenses related to the accident.
Property Damage
If your vehicle or personal belongings were damaged in the accident, your lawyer will seek compensation for:
- Vehicle repair costs
- The replacement value of your car, if it was totaled
- Rental car expenses while your vehicle is being repaired
- Damaged personal property, such as laptops, phones, or clothing
Insurance companies may try to diminish the value of your vehicle, so your lawyer may get an independent appraisal to strengthen your claim.
Pain and Suffering
Not all damages are financial. You may face several types of pain and suffering as a direct result of the at-fault party’s negligence, including:
- Chronic pain or long-term discomfort from injuries
- Emotional distress such as anxiety, depression, or post-traumatic stress disorder (PTSD)
- Loss of enjoyment of life if you can no longer participate in hobbies or activities you once loved
- Permanent scarring or disfigurement that affects your appearance and confidence
Pain and suffering damages are more subjective and may be more challenging to prove. Your lawyer may hire a mental health professional, pull medical records, and take other measures to prove your pain and suffering.
Loss of Consortium
Though loss of consortium is often associated with wrongful death cases, you might deserve compensation for this type of damage if you:
- Lose companionship and emotional support as a result of a non-fatal injury
- Have strained marital relationships due to physical limitations
- Are unable to provide household services or care for children
- Face certain other non-economic damages as a result of the accident
These damages reflect an accident’s broad, non-financial impact on your personal life.
Wrongful Death-Related Damages
If a loved one was killed in a car accident, surviving family members can file a wrongful death claim to recover compensation for:
- Funeral and burial costs
- Loss of financial support and future income
- Medical expenses incurred before death
- Loss of companionship, emotional suffering, grief, depression, and other non-economic damages
Wrongful death claims help families secure financial stability after losing a loved one.
Why Hire a Lawyer to Seek Compensation for Lost Income After a Car Accident (and Other Damages)?
Losing income after a car accident can be financially devastating, especially when combined with medical expenses and other costs. The process of recovering fair compensation can be immensely challenging, especially in light of any physical symptoms, psychological trauma, and other limitations you’re dealing with.
Allow an attorney to lift a massive weight off you. Some of the most important reasons to have a car accident lawyer handle your case are:
The Difficulty of Proving Lost Income
Insurance companies don’t simply take your word for how much money you’ve lost. You need solid proof, including:
- Pay stubs or direct deposit records to show previous earnings
- Tax returns (for self-employed individuals or business owners)
- A letter from your employer verifying your missed work and income
- Medical records proving that your injuries prevented you from working
A lawyer will gather, organize, and present this evidence effectively to ensure nothing is overlooked that can reduce your compensation.
Insurance Companies’ Bad Faith
Insurance adjusters are trained to minimize claims, and they may:
- Argue that your injuries weren’t severe enough to miss work
- Challenge the number of missed days or reduce the amount of lost income
- Delay the claim in hopes that you’ll settle for less
A lawyer knows these tactics and will fight back to demand full compensation. Yours will negotiate aggressively to ensure you’re paid for every dollar you’ve lost due to the accident.
The Potential That You Will File a Car Accident Lawsuit
If negotiations fail, a lawyer can turn to Plan B, which may be to file a lawsuit. If you decide to sue, you may not have the legal background, time, or knowledge to file the suit on your own. Let a lawyer file the suit, and let them fight any court case you pursue.
Many insurance companies offer fair settlements only after a lawyer files a suit, knowing they can lose a substantial sum of money in court. Hiring a lawyer enables you to file a lawsuit, and being able to file a lawsuit can directly contribute to a positive case result.
How a Car Accident Lawyer Helps You After a Crash
You’ve already read about how a car accident lawyer can help. Their services warrant further attention, though, and you should know that a lawyer can:
Investigate and Document Your Car Accident
A lawyer starts by gathering evidence to build a strong case, and that evidence may include:
- The accident report
- Witness statements
- Relevant photos and videos
- A reconstruction from an accident reconstruction expert
- Medical records that support your account of the accident (and other evidence your lawyer collects)
By collecting solid evidence, your lawyer proves who is at fault. They can then show who is liable for the cost of your damages.
Deal with Liable Insurers (So You Can Focus on Healing)
Insurance companies may try to pay you as little as possible. They may even deny valid claims. Your lawyer will protect you by:
- Filing claims and handling paperwork to prevent mistakes
- Negotiating directly with adjusters to push for a fair settlement
- Challenging any attempts to reduce or deny your claim
- Preventing you from making statements that can be used against you
With a lawyer handling your negotiations, you will avoid being pressured into accepting a low offer.
Fight for You to Receive Full Compensation
Many accident victims are unsure of how to calculate their losses. A lawyer will calculate your claim’s full value, including current and future damages.
By thoroughly assessing damages, your lawyer ensures you seek the maximum compensation.
Leading All Legal Proceedings for You
If negotiations fail, your lawyer can take the case to court by:
- Filing a personal injury lawsuit against the at-fault party
- Presenting evidence and expert testimony to prove your claim
- Handling depositions, court filings, and legal motions
- Representing you at trial to fight for fair compensation
Many cases settle before trial, but having a lawyer ready to litigate pressures insurers to offer better settlements.
If you choose to file a car accident lawsuit, and your case goes to trial, trust a lawyer to lead legal proceedings. They will:
- Explain your legal options and answer all your questions.
- File a lawsuit if you choose to.
- Keep you informed about your case’s progress, including any settlement negotiations that take place after filing the suit.
- Handle all legal deadlines and paperwork.
- Fight for you in court if your case goes to trial.
With an experienced attorney, you can focus on healing while they handle every detail of your case.
Hire Your Car Accident Attorney as Soon as You Can
There is no out-of-pocket cost to hire a car accident lawyer, thanks to contingency fees commonly used in the legal field. Consultations are also free. In other words, nothing is stopping you from hiring your San Diego personal injury attorney today.
Ashley Rae Rawlins
Founder and CEO - Rawlins Law Accident & Injury Attorneys, APC
Personal Injury Attorney
Author's Bio