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Copyright 2003 Michael J. Gallagher - All Rights Reserved |
Wage Loss Benefits “Who pays my lost wages and for how long?” Your own No-fault insurance carrier pays your wage loss while you are unable to work because of your injuries for up to three (3) years from the date of the accident, even if you were at fault for the accident, or were a passenger in the car or a pedestrian. If you were a passenger, wage loss would be paid by: 1. The No-fault carrier of your spouse or other relative living with you. 2. If no one in your household has No-fault coverage, then from the owner/driver of the car in which you were a passenger. 3. If the car in which you were a passenger does not have No-fault coverage and another car was involved in the accident, the other driver’s/owner’s insurance carrier. 4. If none of the vehicles involved in the accident are insured, then from the Assigned Claims Facility. Remember, if you were the owner and the driver of an uninsured car or truck, you may not be eligible to recover wage loss benefits, even if the other driver was at fault. “How much wage loss will I receive?” 85% of your average gross wages (based upon the previous six months earnings), including overtime and any wage increases and bonuses you would have received had you been working. Maximum wage loss benefits are set by law, which increases slightly each year. For example, for an accident occurring between October 1, 2004 and September 30, 2005, Michigan law allows a maximum wage loss of $4293 per month, which figures to $51,516 per year. Wage loss benefits are tax-free, which is the reason you receive only 85%. “How do I prove my average gross wage?” The authorization you sign for your insurance company will permit you employer to release your employment records to your insurance company. “What if my wage loss exceeds three years or the maximum amount allowed by law?” This is a limited circumstance permitting you to sue the at-fault driver (and owner of the car) for losses not covered by No-fault, without showing serious injury. “What if I was 'temporarily unemployed' at the time of the accident?" If you were between jobs and would have returned to work, the insurance company will use the average gross wages from your normal job to calculate your work loss benefits. If you were receiving unemployment compensation at the time of the accident, those benefits will stop because you are no longer available for and seeking employment. If you were about to begin a higher paying job but could not start that job because of your injuries, with appropriate proof, the insurance company will use the wages you would have received to calculate your wage loss benefits. If you have any questions, please contact me: Michael J. Gallagher, Personal Injury Attorney mike@lawyerinjuryexpert.com 1-877-445-4446 |
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