Posted on Monday, December 17th, 2018 at 4:09 am
The severity of the injuries sustained in an accident typically determines whether a person misses time from work. Some accident victims may miss a few days or no time from work after an accident. However, other accident victims may be out of work for weeks or months after a crash, especially if they require surgery to treat their injuries.
If an accident victim does not cause the collision, he or she is entitled to compensation for their injuries, losses, and damages. Lost wages is common damage included in accident claims. However, accident victims do not receive immediate reimbursement for financial losses, including loss of income.
When Does the Insurance Company Reimburse Me for Lost Wages?
Unfortunately, you will not receive compensation for your lost wages until your claim is settled. An accident claim should not be settled until you complete medical treatment for your injuries. Settling the claim before your doctor releases you could result in a much lower settlement amount.
It is impossible to know the exact total of your out-of-pocket losses until you are released to go back to work or your doctor tells you that you have a permanent disability that prevents you from working. If you are unable to return to work because of an impairment, your damages will be much higher. When you settle your claim without this information, you could lose hundreds of thousands of dollars in compensation.
Therefore, even though you may need the money, it is not in your best interest to settle your accident claim too soon. However, you also need to be aware of the deadline to file lawsuits in California. If you have not settled your claim before the deadline expires and you do not file a lawsuit, you can lose your right to recover compensation for your claim.
Calculating Loss of Income After an Accident
Calculating the loss of income sustained because of an accident and injury can be complex. An accident victim could have several types of lost income to include in the claim. Examples of damages in this category include:
- Past Lost Wages
Past lost wages equals the total of all lost income from the date of the accident through the date of settlement. When calculating past lost wages, you can include bonuses, overtime, commissions, and other forms of income that you would have earned had it not been for the accident.
- Future Lost Wages
If you are unable to work because of a permanent disability caused by the accident, you can also receive compensation for future lost wages. Future lost wages are more difficult to calculate. In many cases, we consult a financial expert to calculate future lost wages based on several factors such as your age, occupation, anticipated age of retirement, and life expectancy.
- Loss of Earning Capacity
A loss of earning capacity may result when you suffer a disability that impairs your ability to earn the same income as you did before the accident. We also may consult a financial expert to calculate the loss of earning capacity.
Contact a Sacramento Accident Attorney for More Information
In some cases, loss of income may equal a substantial portion of an accident claim. You need to ensure that you calculate the value of your lost income correctly to maximize the amount of compensation you receive for your accident claim.
Call The Tiemann Law Firm at (916) 999-9000 or contact us online to schedule a free consultation with one of our Sacramento accident attorneys to discuss your case.
