How Is Lost Income Calculated?

Using a calculator to break down costs

If you are injured in a crash and are unable to work for several weeks, you can get compensation from the at-fault driver’s insurance company for your lost wages. Your lost wages can include your regular weekly salary, but also any overtime, commissions, bonuses, promotions, and paid time off you would have accrued if you hadn’t been injured. In addition, you may be able to recover an amount for future lost income if your injury has forced you to change jobs or leave the workforce altogether.

How to Estimate the Amount of Future Income Losses in a Car Accident Case

If your injury has resulted in permanent limitations that affect your ability to earn a living, you should not be forced to live on a restricted income because of someone else’s negligence. When you file your injury claim, you can include the amount you will lose each year as a result of your work restrictions, your ability to find a suitable job, and other work-related costs of your disability.

Some factors that will be considered when determining your lost earning power include:

  • The number of years left before your retirement age
  • Any injuries or impairments you had before the accident
  • How long you have held your current job
  • How much you made while working for past employers
  • The nature of your work and the job skills needed to perform that work
  • Your age and educational background
  • Your role as a breadwinner in your home
  • Your economic lifestyle

Lost income can make up a significant portion of an injury victim’s damages, so it is vital that these calculations be done correctly. The Tapella & Eberspacher Law Firm can gather all of the necessary medical and financial evidence you need to support your injury claim, and can ensure that your demand for employment losses is thorough and well-documented. To learn more about your legal rights after an accident in Illinois, contact us via our quick online form to schedule an appointment, or download your FREE copy of our book, When the Rules of the Road Get Broken: A Guide to Illinois Car Wreck Cases.