Who Pays for Lost Wages in a Car Accident?

Who pays for lost wages in a car accident depends on who was at fault and what type of insurance coverage applies. In North Carolina, the at-fault driver’s insurance is generally responsible for paying for your missed income.

These claims can be challenging when you have injuries, medical bills, or questions about how long the accident will stay on your record. If you were hurt in a crash in North Carolina and cannot work, our Raleigh car accident lawyer can seek repayment for the time you missed.

We will explain how fault and insurance coverage affect your recovery, gather proof of the pay you lost, and make sure your claim meets state deadlines. You can reach out to us for a free consultation to learn your options for moving forward.

What Does “Lost Wages” Mean After a Car Accident?

Lost wages in a car accident refer to the income you would have earned if the crash had not happened. This income includes:

• Regular paychecks
• Hourly wages
• Tips
• Commissions
• Overtime pay
• Bonuses

For salaried workers, lost wages are based on the portion of time missed due to the accident.

If your injuries keep you from returning to your old job or reduce your work hours, you may also be able to claim loss of future earning capacity. That covers the longer-term effects of your injuries on your ability to make a living.

Even a short absence from work can create financial stress. North Carolina law gives injured drivers and passengers the right to pursue repayment for these losses when another party’s carelessness caused the crash.

Who is Responsible for Paying Lost Wages?

In North Carolina, car accident cases follow the fault system. This means the driver who caused the accident — and their insurance company — must pay for the damages, including lost income.

Depending on the details of your case, payment for any wages you lost may come from:

• The at-fault driver’s liability insurance: The other driver’s insurer pays most claims for lost wages. State law (G.S. § 20-279.21) requires all drivers to carry at least $30,000 in bodily injury coverage per person and $60,000 per accident.
• Your insurance policy: If the at-fault driver doesn’t have enough coverage or fled the scene, your uninsured/underinsured motorist (UM/UIM) coverage can step in.
• Your employer’s benefits: Some workers have short-term disability or sick leave that covers part of their pay while they recover. You can still pursue a claim against the at-fault party for any unpaid portion.
• Workers’ compensation: If you were driving for work at the time of the crash, you may qualify for benefits under North Carolina’s workers’ compensation laws. Our workers’ compensation lawyer in Raleigh will help you with your claim.

Because different sources can pay lost wages, our lawyer can help you avoid missed deadlines or payment mistakes.

Proving Lost Wages After a Traffic Crash

To recover your lost pay, you have to show clear proof of what you would have earned if the accident hadn’t happened.

You can use documents to prove this, such as:

• Recent pay stubs or tax returns showing your regular earnings.
• A statement from your employer confirming your job title, hours missed, and hourly or salary rate.
• Medical records confirming your injuries and how they prevented you from working.

If you work for yourself, you can use tax forms, invoices, or business records to prove your lost income. Our attorneys will work with your employer or accountant to calculate the total amount of your losses accurately.

What If an Accident Caused You to Miss Out on Future Income or a Job Promotion?

Sometimes, effects from a crash last long after your stay at the hospital ends. If your injuries cause permanent or partial disability, you might not be able to perform your usual duties. You also may not qualify for raises or take on higher-paying work.

If this is your situation, you can pursue loss of earning capacity as part of your injury claim. This looks at what you were expected to earn in the future and compares it to what you can earn now because of the accident.

Our attorneys can work with career professionals or economists who can help show how your serious injuries affect long-term income.

When You May Not Recover Lost Income After a Collision

In some cases, drivers hurt in a crash cannot recover their lost pay, even when their injuries are serious. North Carolina’s contributory negligence rule (outlined in G.S. § 1-139) can affect whether someone recovers compensation after an accident.

Per the rule, if you are found even 1% at fault for the accident, you could lose your right to recover damages, including the wages you lost. Insurance companies may try to use this rule to limit how much they pay out. They also may say you were partially or completely responsible for the crash.

If this happens in your case, we will challenge this by gathering evidence to protect your right to recover all your damages. This evidence can include police reports, video footage, photos, or witness statements. Guidance from our legal team will ensure we don’t miss a step when recovering the pay you lost.

We Help Clients Pursue Claims for Lost Wages After a Crash

Car accident cases can involve more than one insurance company, detailed paperwork, and strict filing deadlines. Our firm will handle those tasks while you focus on healing.

Our Raleigh personal injury lawyer will:

• Review your insurance coverage and determine which policies apply.
• Collect medical and employment records to prove the wages you lost.
• Communicate with insurers and challenge low or denied settlement offers.
• File your claim or lawsuit within the state’s three-year statute of limitations for personal injury cases under G.S. § 1-52.

These cases can be technical and time-sensitive. Guidance from our legal team will ensure we don’t miss a step when recovering the pay you lost.

Do You Have to Pay Taxes on Lost Wages?

Generally, payments for lost wages through an insurance settlement are taxable only if they replace income you would have earned at work. If your case includes other damages like medical expenses or pain and suffering, those portions are not taxable.

It’s a good idea to discuss your settlement details with a tax professional before filing your return to avoid surprises.

How Long Does It Take to Recover Lost Pay After an Injury?

The timeline depends on the complexity of the case. If the insurance company accepts fault and the claim is clear, payments can arrive in a few weeks.

If liability is disputed or your injuries are severe, the process can take several months or longer. Your lawyer can push for a fair settlement and keep you updated on progress, especially if your lost income is creating financial hardship.

Free Consultations and Support for Lost Wage Claims

Car accident cases are stressful enough without worrying about paperwork and unpaid bills. You deserve clear answers about who pays for lost wages in a car accident and what your next steps should be.

Whitley Law Firm has helped seriously injured individuals across North Carolina since 1974. Together, we have 120-plus years of combined legal experience, so we understand what it means to deal with missed paychecks and ongoing medical costs after a wreck.

We are available 24/7 and return phone calls promptly, usually within a day, because your recovery matters. Call us today for a free consultation. There are no upfront fees, and you won’t owe anything unless we recover your damages. Taking action now can help you secure the income and peace of mind you deserve after a North Carolina car accident.