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If you have been in a serious car accident, you likely missed some work, whether it was to attend doctors’ appointments, go through physical therapy, or were unable to work during your recovery. Regardless of your field and abilities, an accident can make it very hard to work and earn at pre-accident capacity.
While some jobs provide a limited amount of paid time off, for other employees the loss of income is immediate. That’s why it is important to know what compensation is available for lost wages after a motor vehicle accident. Car accident lawyers can help make sure you get fair replacement for lost wages and other forms of income.
No-Fault Benefits Help With Lost Wages and Income
Auto accidents in Michigan are covered by No-Fault auto insurance. If you own a car, you must have coverage that protects you in an accident. Even as a passenger or pedestrian, you are still covered.
Your No-Fault insurance policy includes lost wages compensation. After an accident, your insurance company is required to pay 85 percent of your lost income for up to three years, according to Mich. Comp. Laws Ann. § 500.3107. You can use this benefit to cover unpaid time off for medical exams and doctors’ visits, to pay your bills during your FMLA medical leave, or to bridge the gap if your condition causes you to lose your job.
If you happened to be unemployed when the accident happened, you can still receive lost wages benefits as long as you were actively seeking employment. How much you will be paid will depend on the kinds of jobs you were qualified for prior to the accident.
What If I’m Self-Employed and Hurt in an Accident?
Lost income benefits from PIP or a lawsuit are not just for regularly employed workers. If you are self-employed, we can still help you fight for compensation. Determining the full extent of lost income is already challenging, but it can be even more complex when victims are self-employed.
Our lawyers will draw on previous tax returns, financial statements, proof of income and expenses, and other documents to demonstrate how much the injuries have hurt your ability to support yourself and your household.
Long Term Disability and Your Income
The three-year limit on lost wages under the Michigan No Fault Act simply isn’t enough in cases of serious or long-term disability. If your car crash leaves you with a “serious impairment of a bodily function,” your recuperation could easily exceed the three-year limit.
That is why the Michigan No Fault Act allows seriously injured motorists to sue the at-fault driver to cover the short-fall. Your third-party lawsuit can include claims for long-term disability and lost wages beyond the three-year mark. It will cover living expenses even if you are never able to return to work, or if your later employment pays significantly lower wages than you were qualified for before the accident.
Wrongful Death and Lost Wages
If a family member has been in a fatal car accident, the surviving beneficiaries (including spouse and children) are still entitled to compensation for the money the deceased would have earned. This amount is not specifically calculated as “lost wages.” Instead, it is based on earning potential and actuarial tables to determine how much the deceased would have earned if he or she had been able to keep working for the rest of his or her natural life.
How a Michigan Lawyer Can Help With Lost Wages After a Car Accident
Right after an accident, it can be hard to think about taking legal action or calculating figures to make up for lost income. You may not know how to calculate the full extent of your losses, especially if you are still out of work, or you are unsure if you’ll work again. That’s where an auto accident attorney from our firm can help:
- Our team has resources to help estimate current and future income losses, including lost earning potential.
- Our lawyers will gather evidence to help show proof of your wages and benefits and your injuries’ impact on your ability to work. We can gather pay stubs, tax returns, and other documents to show proof of income.
A lawyer can help make this stressful process easier to handle by handling these and many other tasks.
Act Fast to Protect Your Rights to Wage Loss Benefits
The aftermath of a car crash can be overwhelming, and it’s easy to let time slip away from you as you are focused on recovering and getting your life back to normal. Right after your accident, reach out to your auto insurance company to report the incident.
The sooner you let the company know, the sooner your claim for benefits can begin. Your company may deny you wage replacement, other PIP benefits, and other insurance payouts if you wait too long to file your PIP claim. A lawyer can help you with this part of your claim as needed.
State Statutes of Limitation
In addition to the initial PIP filing, you may need to file a lawsuit for delayed PIP benefits, or you may need to file a lawsuit for damages from the at-fault driver. Both scenarios do have a state statute of limitations for filing your lawsuit:
- You have three years from the date of the accident to file a lawsuit against a negligent driver, per Mich. Comp. Laws Ann. § 600.5805.
- You have one year to file suit for unpaid PIP benefits, per Mich. Comp. Laws Ann. § 500.3145.
No matter what deadline applies to your case, it does not pay to wait too long. Acting quickly means protecting your rights to lost wages and other damages.
Call Our Auto Accident Lawyers Today for a Free Consultation
Calculating how much you are entitled to in lost wages can be difficult. An auto accident attorney from Christensen Law can help you put a value on what you have lost. The Christensen Law team will fight for the money you need to live while you are healing. Call our office now for a free consultation.
