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.

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From the very start of my case the Tiemann Law Firm was wonderful. Perter came all the way to my home to sit down and talk to me about my options. He made me and my partner feel very comfortable and promised us he would take the very best care of my case. Peter kept me informed every step of the way and was always on top of things. everything was done in a timely manor and I always felt like I was the only case he was working on because he was so fast. In the end Peter got me back way more money than I ever expected. I would recommend this law firm to everyone. I am very happy with the outcome of my case thanks to the Tiemann Law Firm! Thank you!

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It is hard to put into words the care and dedication that I received from the Tiemann’s. They have been here for me every step of the way and were always available when I had questions or concerns. My husband and I will be forever grateful for everything they have done for us and our family. Thank you so much for all of the hard work and time you have put into my case, we greatly appreciate it and your friendship. We highly recommend this firm and will always be thankful for everything they have done. Thank you so much again, Kim

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Tiemann Law Firm helped us with an injury case for my nephew. They were very knowledgeable and we are very happy with the service they provided. The entire staff is topnotch!

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I chose Tiemann Law Firm to help me after a car accident I was involved in. Throughout the entire process, Moe made sure to keep me updated, he always responded quickly whenever  I had questions about anything. My case won thanks to this law firm and its dedication. My experience with Tiemann Law Firm was amazing! 10/10 recommended.