Who Pays Lost Wages after a Car Accident?
Many auto insurance policies cover the first $5,000 of lost wages. Coverage begins on the sixth day you're out of work or working reduced hours, and pays up to 80% of your gross wages for five months, not to exceed $1,000/month.
Say your monthly salary is $3,000. After receiving the coverage limit of five monthly $1,000 payments from your insurer, you can recover the additional $2,000/month of lost wages from the at-fault driver’s insurance company.
What if you’re disabled and out of work for 10 months? Once the at-fault driver’s insurer has paid the balance due of $10,000 for your first five months of lost wages, it’s their responsibility to pay your full monthly salary of $3,000/month until you resume working full-time.
If your policy does not include wage loss coverage, you could be reimbursed through employee benefits such as sick days, short term disability or vacation pay. Then, whether your policy is full or limited tort, you can recover the balance of your lost wages for those months from the at-fault driver’s auto insurance company.
To discuss your case with Attorney Andrew Goldberg, call 610-892-7744 day or night.