One of the most trying hardships that many people face in the aftermath of a serious car accident is a sudden loss of income. Being unable to work can put an enormous strain on accident victims and make the recovery process a lot more stressful.
When evaluating whether to pursue a legal remedy after a car accident, people need to consider the value of their lost wages. Having access to income that they could not otherwise earn may provide critical support.
Typically, the best way to determine the value of lost wages is to multiply a person’s regular rate of pay by the length of time that they cannot work. Salaried workers can arrive at an approximate amount by dividing their total salary by the number of days that they work in a year and then multiplying that figure by the number of days that they were away from work.
A person who suffers a permanent disability may be able to get compensatory damages for the wages that they will be unable to earn in the future. The best way to approximate future lost wages is to multiply annual income by the number of years that a person planned to continue working. Bear in mind, however, that future lost wages calculations do not always account for key factors such as the prospect of professional advancement or inflation.
Workers’ compensation and short-term disability coverage may not pay for all of a person’s lost wages. After a serious accident, Initiating a legal claim may be the best course of action.