Motor vehicle accidents can cause a range of injuries, from relatively minor scrapes and bruises to more serious broken bones, brain injuries, and even paralysis. Depending on the severity of your injuries after a car crash, you might not be able to work for a period of time. This often raises the question – who will pay for my lost wages?
In New York, all drivers are required to carry no-fault insurance that will cover up to $50,000 in economic losses – including lost earnings – after an auto vehicle accident, regardless of who was at fault. If your losses exceed this policy limit, then you can seek compensation through a personal injury lawsuit against the responsible party. An experienced Long Island car accident attorney can help you get maximum compensation for your losses, including lost wages and reduced earning capacity.
The Odierno Law Firm advocates for the rights of accident victims throughout Long Island. We offer free initial consultations and never charge a fee unless we get money for you. Reach out today to schedule an appointment with a member of our legal team.
Who Pays for Lost Wages After an Accident?
In a personal injury claim, you may be entitled to recover both economic and non-economic damages to compensate you for your losses. In some cases, you may also seek compensation for punitive damages. These damages are different from economic and non-economic damages because they are meant to punish a wrongdoer instead of compensating a victim.
Economic damages pay an accident victim for the direct financial losses that they experience, such as property damage, medical expenses, lost wages, and reduced earning capacity. non-economic damages pay for intangible losses such as pain and suffering, emotional distress, loss of enjoyment of life, scarring, and disfigurement.
In New York, drivers are required to carry auto insurance. An insurance policy must include three types of coverage:
- No-fault insurance or personal injury protection (PIP) to pay for a set amount of economic losses after an accident (regardless of fault)
- Liability insurance to cover any losses that you might cause to another person and/or their property
- Uninsured/Underinsured Motorist insurance protects against losses that you may incur from a driver who either did not have insurance coverage or did not have sufficient coverage to pay for your losses.
Because lost wages are a type of economic damage, they will first be covered by no-fault insurance/PIP coverage. This insurance is meant to pay an accident victim promptly for their economic losses regardless of who was the at-fault driver in a crash. No-fault insurance will pay up to $50,000 for medical bills, lost earnings, and certain other reasonable and necessary expenses related to injuries suffered in an accident.
PIP does not pay for other damages, including car repairs. The goal of this insurance is to make sure that the immediate needs of lost earnings and medical expenses are covered quickly.
Under this coverage, your own insurance company will pay lost wages for a car accident, even if you were not at fault. Basic no-fault insurance will cover 80% of lost earnings from work, up to a maximum payment of $2,000 per month for up to three years from the date of the accident.
If your medical bills and lost wages exceed the $50,000 policy limit for PIP, you can then file a claim against the at-fault driver’s insurance company for economic and non-economic damages (plus punitive damages where appropriate). To do so, you must have suffered a “serious injury” as defined by New York law. A serious injury includes:
- Death
- Dismemberment
- Significant disfigurement
- Fracture
- Loss of a fetus
- Permanent loss of use of a body organ, member, function, or system
- Permanent consequential limitation of a body organ or member
- Significant limitation of use of a body function or system
- Medically determined injury or impairment of a non-permanent nature which prevents the injured person from performing substantially all of the material acts which constitute such person’s usual and customary daily activities for not less than 90 days during the 180 days immediately following the occurrence of the injury or impairment.
Under these laws, the first party that is responsible for your lost wages is your insurance company through your PIP coverage. If your damages exceed the $50,000 threshold and you suffered a serious injury, then you can file a personal injury claim against the responsible driver. Our Long Island personal injury lawyers can help you understand your rights and help you through the process.
How to Get Reimbursed for Lost Wages
If you miss work because of injuries related to a car accident, then you should file a claim with your insurance company for PIP coverage. Typically, you will be required to submit a claim within 24 to 48 hours of an accident. It can still take time for your insurance company to process the claim, so you might not get paid immediately.
If your lost wages and other damages exceed your policy limits and you suffered a serious injury, then you can file a personal injury lawsuit against the at-fault driver. A personal injury claim is often necessary to get full compensation for your losses, particularly when it comes to non-economic damages like pain and suffering.
The process starts with a free initial consultation with a Long Island car accident attorney. They will listen to you and then offer you legal advice on your rights and options based on their knowledge of New York law. It is best to contact a lawyer as soon as possible after a motor vehicle accident so you know what steps to take to protect yourself.
Even if you don’t anticipate needing more than no-fault insurance coverage, it is always a good idea to talk to an attorney. Even your own insurance company may delay or deny a legitimate PIP claim. Working with a lawyer can ensure that you get the full amount of money that you deserve – whether through your no-fault coverage or a personal injury claim.
One key aspect of getting reimbursed for lost wages is being able to prove your loss. First, you will need to show that you suffered injuries that prevented you from working. You can do this through medical records and a statement from your treating physician about how your injuries impacted your ability to work and/or perform everyday tasks.
Second, you will have to demonstrate that you have lost income as a result of your injuries. Documentation for this type of claim may include:
- Recent pay stubs and/or time cards
- A letter from your employer
- Income tax returns from prior years
- Information about your employee benefits, which will show whether you used paid time off (PTO), sick days, or vacation days after your car accident. Some of these benefits may be part of a lost wage claim.
All of these documents can be used to show the amount of wages that you lost so that you can be properly reimbursed for your accident claim.
If you are self-employed, it may be a bit harder to prove lost wages – particularly if your income isn’t steady. However, you can still put together documentation that shows your financial losses, such as previous income tax returns, proof of contracts or projects that you couldn’t complete because of your injuries, bank statements, and/or evidence of canceled appointments. This type of evidence can be used to show that you missed opportunities to earn money or had to turn away work because of the injuries that you suffered in a motor vehicle accident.
For both a no-fault claim and a personal injury lawsuit, it is important that you are able to prove the amount of lost wages that you suffered. Much of this proof can also be used to show reduced earning capacity as part of a personal injury claim. A Long Island car accident lawyer can work with you to gather evidence of your claim and help you submit proof so that you are fully reimbursed for your losses.
Hurt in a Car Crash? Don’t Wait to Call.
In New York, no-fault benefits will cover up to $50,000 in losses for medical expenses and lost wages. You can file a claim for no-fault benefits with your insurance company. If your losses exceed the policy limit, then you can pursue additional compensation for these and other losses through a personal injury lawsuit.
The Odierno Law Firm works with accident victims in Suffolk and Nassau counties who are seeking compensation through PIP coverage and/or a personal injury lawsuit. We offer free initial consultations and handle all cases on a contingency fee basis. To learn more, call our law offices at 631-651-6246 or fill out our online contact form for a free consultation with a Long Island personal injury attorney.
Can I Be Disqualified from Getting Lost Wages from My No-Fault Insurance Policy?
Yes. In some situations, you won’t be able to file a claim for no-fault benefits. Specifically, if you were hurt while driving under the influence, riding an all-terrain vehicle (ATV) or motorcycle, committing a felony, driving or riding in a vehicle known to be stolen, or if you intentionally caused your own injuries, you cannot file a no-fault claim. In addition, if your vehicle is uninsured, you won’t be able to seek no-fault insurance benefits.
These situations are unusual, but it is still important to understand these limitations. If you have questions about your rights as an injured party in an automobile accident, contact The Odierno Law Firm today. Initial consultations are always free of charge.
How Does Compensation Work If I Am Disabled from My Injuries?
If you are temporarily or permanently disabled because of your accident injuries, then it may affect your ability to work for more than just a few weeks or months. These types of injuries may result in a claim for reduced earning capacity. Essentially, you are filing a claim to recover lost future earnings – or what you would have earned if you had not been hurt in a car crash.
Reduced earning capacity is not covered by no-fault benefits. Instead, you will need to file a personal injury lawsuit against the at-fault driver. The Odierno Law Firm will work with expert witnesses to prove the full extent of your losses. Contact us today to talk to a Long Island car accident attorney about your case.
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Scott F. Odierno is a partner at Odienero Law firm. Find out more about Scott on his profile page, or view any of his social media profiles below:
