A car accident can impact more than just your vehicle and physical health; it can also affect your ability to work. If your injuries prevent you from returning to your job, you may be entitled to recover lost wages. But how long does it take to get lost wages from a car accident?
The timeline varies depending on several factors: the severity of your injuries, whether fault is disputed, the responsiveness of insurance companies, and whether your case requires legal action.
Some victims receive a payout within a few weeks, while others may have to wait months or even years. To help avoid unnecessary delays, our legal experts at Compass Law Group, LLP will go over how lost wages are defined, how they're calculated, and how to claim lost wages from a car accident.
What Are Lost Wages After a Car Accident?
Lost wages refer to the income you’re unable to earn due to injuries from a car accident. This includes not just your regular paycheck, but any income or benefits you missed because you couldn’t work.
Accurately calculating these losses is essential to ensure full compensation. An experienced personal injury attorney can help gather the proper documentation and advocate on your behalf to secure a fair settlement.
Types of Lost Wages You Can Recover
Depending on your job and how the accident affected your work, you may be able to recover a wide range of wage-related losses. Some of the types of lost wages include:
Regular Income (Hourly/Salary)
The most straightforward claim involves the base pay you would have earned if you hadn’t missed work. This is typically calculated by multiplying your hourly rate or daily salary by the number of workdays missed.
Overtime Pay and Seasonal Income
If your job regularly includes overtime, or if you were injured during a busy season, your lost wages should reflect that lost income.
Bonuses and Commissions
Sales professionals and contractors often rely on bonuses or commissions to supplement their income. These amounts can be included in your claim using prior pay stubs, contracts, or employer statements.
Paid Time Off and Vacation Days
If you had to use vacation or sick days because of your injury, you can often claim the value of those days as part of your lost wages. This is usually because these are benefits you would not have used otherwise.
Employer-Provided Benefits
Many employees receive fringe benefits like 401(k) contributions, health insurance coverage, or travel stipends. If you lose access to these due to an extended leave, their value can be included in your claim.
Missed Promotions or Raises
In long-term recovery cases, some victims miss out on scheduled promotions, annual raises, or role changes. While harder to prove, these losses can be documented with HR records or emails.
Lost Earning Capacity
If your injuries are permanent or affect your long-term ability to work, you may be eligible for compensation for lost earning capacity. This is typically calculated with the help of economic experts or vocational analysts.
How To Claim Lost Wages From a Car Accident
Filing a claim for lost wages requires both precision and preparation. Insurance companies will ask for clear evidence to support your time away from work, and any delay or missing documentation can hold up your compensation.
Here’s how to get started:
Initial Steps To Take After the Accident
- Notify Your Employer: Let your employer know about the accident as soon as possible and explain how it may affect your work schedule or ability to perform job duties.
- Seek Immediate Medical Attention: Even if your injuries feel minor, getting checked by a medical professional is essential. Delayed treatment can weaken your claim.
- Keep All Documentation: Save every medical note, doctor’s diagnosis, hospital bill, and correspondence related to time off work. These documents form the backbone of your claim.
Filing With Your Insurance Provider or At-Fault Driver’s Insurer
Lost wages are usually claimed either through the at-fault driver’s insurance or your own uninsured/underinsured motorist coverage.
Each insurance company will have different paperwork requirements, but most will ask for documentation confirming your income and proof that your injury directly caused work limitations.
Required Documentation
To support your lost wage claim, you’ll typically need to provide adequate documentation to strengthen your claim. This often includes:
- Paystubs or direct deposit records from before and after the accident
- A doctor’s note detailing your physical restrictions and recommended time off
- Employer statement verifying the dates missed and your normal earnings
- For self-employed workers, you’ll also need:
- Prior tax returns
- Invoices or client contracts
- Bank statements showing regular business income
Legal Support and Representation
Legal counsel can also help escalate your claim if the insurance company is uncooperative or acting in bad faith. Not only that, but having a personal injury attorney on your side helps ensure:
- Your wage claim is complete and well-documented
- The insurer doesn’t undercut or delay your compensation
- You receive guidance on what types of income can be included
Who Pays for Lost Wages in a Car Accident?
Before you can file a lost wage claim, you need to know who you’re filing with. This depends on the fault, your insurance policy, and where the accident occurred.
Who pays for lost wages in a car accident? More often than not, the party responsible for paying these lost wages is either:
- At-Fault Driver’s Insurance: If the other driver caused the crash, their liability insurance typically pays for your lost wages.
- Your Own Insurance: In cases where the at-fault driver is uninsured or underinsured, your personal uninsured/underinsured motorist (UM/UIM) coverage may kick in.
- Third Parties: If a government entity or employer was partially responsible, they may also be liable for wage-related damages.
- Worker’s Compensation: If the crash occurred while you were working, you may qualify for workers’ comp benefits.
How Are Lost Wages Calculated?
Calculating your lost wages depends on your job type, the length of your recovery, and whether your injuries impact your future earnings. Let’s break it down by the type of employment:
Hourly Employees
For hourly workers, the calculation is typically:
Hourly wage × hours missed due to injury
For Example:If you earn $20/hour and miss 80 hours of work over two weeks, you may be eligible for:
$20 × 80 = $1,600 in lost wages
Salaried Workers
Salaried employees are usually compensated based on the number of workdays missed:
Annual salary ÷ 52 weeks ÷ 5 days × missed workdays
For Example:
A salaried employee earning $65,000 per year who misses 15 workdays could claim:
($65,000 ÷ 52 ÷ 5) × 15 = ~$3,750 in lost wages
Self-Employed Individuals
Freelancers, contractors, and business owners face a more complex process. You’ll need to show consistent earnings patterns before the accident and how those were impacted afterward.
This documentation may include:
- Tax returns
- Invoices or canceled contracts
- Profit/loss statements
- Bank records
Future Lost Income & Earning Capacity
If your injuries prevent you from returning to the same job or reduce your work hours or physical abilities, you may qualify for future lost earnings.
These calculations typically include:
- Your age and projected working years
- Earning history
- Expected raises or promotions
- Medical outlook and long-term limitations
For Example: If a construction worker permanently injures their back and must transition to a lower-paying job, they may be compensated for the wage gap between the two roles over time.
How Long Does It Take To Receive Lost Wages Compensation?
While this is the biggest question many car accident victims want an answer to, there’s no single answer. Payout timelines can range from a few weeks to multiple years, depending on the details of your case.
Timeline Factors
Several factors can speed up or drag out the process:
- Fault Disputes: If the other party denies responsibility, resolving the claim may require months of investigation or litigation.
- Injury Severity & Medical Recovery: Serious or complex injuries often require ongoing care. Insurance companies may wait for maximum medical improvement (MMI) before making a settlement offer.
- Completeness of Your Documentation: Missing or vague wage records can lead to delays, requests for clarification, or denials.
- Insurance Company Responsiveness: Some insurers act in bad faith, use delay tactics, or offer lowball settlements.
- Lawsuit vs. Settlement: If you file a lawsuit, it may take 1–2 years or more to resolve, depending on court scheduling and negotiations.
Realistic Timelines
While we can’t give you an exact answer, we can offer some realistic timelines that give you an idea of what the process may look like.
Here are some guidelines based on the severity of your injuries and other documentation factors:
- Minor injuries with clear fault and full documentation: 2–8 weeks
- Moderate injuries requiring short-term recovery: 1–6 months
- Severe injuries or cases that move to litigation: 1–2 years+
How To Speed Up the Process
Being organized, persistent, and having legal support gives you the best chance of achieving a fast and fair result. Here are a few ways to help minimize delays:
- Provide all documentation up front.
- Work with a personal injury attorney who knows how to navigate these claims.
- Follow up with your insurer regularly and keep communication in writing.
Time Limits to File a Lost Wages Claim
Even though recovering from an accident takes time, waiting too long to take legal action could cost you your right to compensation. Like all personal injury claims, there are strict statutes of limitations that vary by state.
In California, you generally have two years from the date of the accident to file a personal injury claim, which includes lost wages. If you’re filing a claim against a government entity, the deadline can be as little as 6 months.
If you're unsure about your deadline, talk to a qualified personal injury attorney as soon as possible.
Common Challenges When Recovering Lost Wages
Even with solid evidence, wage loss claims often hit unexpected roadblocks. Understanding these obstacles can help you prepare and respond effectively:
Denial of Liability
If the at-fault driver disputes responsibility or their insurer argues that your injuries weren’t caused by the accident, the claim may be delayed or denied.
Insufficient Medical Documentation
If your doctor doesn’t explicitly link your injury to your time off work, or if follow-up notes are missing, insurers may claim you were able to work.
Disputes Over Wage Calculations
Insurance companies may undervalue your bonuses, commissions, or missed overtime. They may also argue that your time off was excessive.
Insurance Stalling or Bad Faith
Delays, lowball offers, or ignoring your claim altogether are common tactics used to wear down accident victims.
Self-Employment Complexities
Freelancers and contractors often face extra scrutiny. Insurers may claim their income is unpredictable or unverifiable, making legal support even more essential.
Additional Compensation You May Be Eligible For
Lost wages are just one part of the damages you may recover after a car accident. Depending on the case, you could also pursue compensation for:
- Medical Expenses
- Pain and Suffering
- Property Damage
- Punitive Damages (in cases of severe negligence)
- Wrongful Death Damages
How an Attorney Can Help Maximize Your Lost Wage Claim
While it’s possible to file a lost wage claim on your own, working with an experienced personal injury attorney at Compass Law Group, LLP can significantly improve your results.
Here’s what our lawyers bring to the table:
We Identify All Income Streams: Our attorneys ensure you don’t overlook compensable wages like bonuses, PTO, missed commissions, or employer contributions.
We Strengthen Your Documentation: Our team can help you obtain clear, comprehensive documentation from your doctor and employer, which are two areas where delays often arise.
We Counter Insurance Tactics: Insurers often try to downplay lost income or deny liability altogether. We know how to negotiate aggressively and spot bad-faith practices.
We Preserve Deadlines: Our legal team keeps track of important filing deadlines to ensure your claim remains valid under California’s statute of limitations.
We Represent You in Litigation: If your case proceeds to court, our lawyers will prepare your case, call expert witnesses, and advocate on your behalf.
Securing Your Lost Wages After a Car Accident
How long does it take to get lost wages from a car accident? The timeline can vary depending on a variety of factors. From notifying your employer and gathering medical records to submitting a well-documented claim, every step counts.
While it’s possible to manage the process alone, legal guidance ensures nothing is missed and gives you the leverage needed when insurance companies stall or underpay.
Speak with the trusted car accident attorneys at Compass Law Group, LLP today for a free consultation and begin the process of reclaiming what you’ve lost.
Frequently Asked Questions
Who pays for lost wages in a car accident?
Typically, the at-fault driver’s insurance is responsible. If they’re uninsured or underinsured, your own PIP (personal injury protection) or UM/UIM coverage may apply.
Can I claim lost wages if I used PTO or vacation days?
Yes. Those are benefits you shouldn’t have had to use, so their value can be included in your claim.
What if I’m self-employed?
You can still claim lost wages using past tax returns, bank statements, and invoices to demonstrate income loss.
Do I need a lawyer to claim lost wages?
Not always, but legal representation significantly improves your chances of receiving full compensation and avoiding insurance delays.
What happens if the other driver doesn’t have insurance?
You may still be able to recover lost wages through your uninsured motorist coverage or, in some cases, by suing the driver personally.
