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Last Modified on Apr 02, 2026
Experiencing a car accident can be life-altering, especially when it affects your ability to work. In Michigan, to claim lost wages from a car accident, you must have physical injuries. However, there is much more than meets the eye, and the process is deliberately complicated without a lawyer’s assistance. It is important to know how to claim lost wages from a car accident.
Therefore, understanding this process is essential. Below, we outline all of the necessary steps to successfully claim lost income after a car accident.
What Counts as Lost Wages
Lost wages don’t just refer to that one paycheck you missed while recovering from your car accident. Instead, they also refer to any wages you would have otherwise earned if you were able to work but couldn’t due to your injuries. Hourly wages, salary, overtime pay, bonuses, and commissions may be included in your lost wages calculation if commissions are part of your typical earnings.
If you used sick days or vacation time during your recovery, you may be entitled to compensation for those as well. If you can’t go back to work in the same capacity or have had your hours reduced due to your injuries, you may also be eligible for loss of future earning capacity. Loss of future earning capacity may be awarded to you if your injuries affect your ability to earn a living long-term.
Self-employed workers may also be able to recover damages for lost wages. You may need to show proof of decreased business income, lost contracts, or lost opportunities. Keep in mind that your documentation may also include tax returns, invoices, and financial statements.
Local Statistics
There are many auto accidents in Michigan. The Michigan State Police report that there were 288,880 traffic accidents in the state in 2024. 1,012 of these were fatal. 1,099 people died as a result of this. Additionally, there were 51,202 collisions resulting in 71,316 injuries. There were also 236,666 crashes that caused property damage.
1. Understand the Injury Requirement
In Michigan, you must have sustained “accidental bodily injury” to claim lost wages after a car accident. While you don’t have to necessarily prove your injuries per se, you do have to provide the following when filing a lost wages claim:
Proof through your doctor’s reports or testimony that you are disabled from work
Simply put, Michigan’s no-fault law requires “reasonable proof,” so that your lost wages claim is paid in a “prompt and expeditious manner.”
Additionally, if you were “temporarily unemployed” or working reduced hours during your accident, you can still claim lost income. Your payment, however, would be based on your earned income for the last month you were employed full-time preceding the accident.
2. Document the Accident and Injuries
After an accident, immediately document every aspect, including the scene, the damages, and most importantly, any injuries you sustain. Photographs, witness information, and a copy of the police report are crucial.
These pieces of evidence are vital for establishing the link between the accident and your injuries.
3. Seek Immediate Medical Attention
Prioritize getting medical attention right after the accident. Medical documentation is not just crucial for your health but also serves as clear proof of your injuries. These records form the foundation of your claim for lost wages.
4. Notify and Communicate with Your Employer
Inform your employer about the accident and your subsequent injuries as soon as possible. Afterward, keep records of all communications regarding the inability to work due to these injuries.
This evidence becomes important when you claim lost wages.
5. Carefully Track All Lost Income
Record all income lost because of not being able to work post-accident. This includes not just your salary but also any lost opportunities, such as overtime, bonuses, and other benefits.
Remember, your claim’s validity hinges on demonstrating how the injuries directly led to financial loss!
6. Review Your Auto Insurance Coverage
Check your auto insurance policy for specifics on wage loss coverage under personal injury protection benefits.
Understanding your policy’s provisions is key to determining your eligibility and the extent of compensation you can expect.
7. File a Claim with Your Insurance Provider
Report the accident and your injuries to your insurance provider promptly. During this conversation, ask about the required documentation for a lost-wage claim and submit it as soon as possible.
The efficiency of this process can significantly affect the speed of your compensation.
8. Consult a Personal Injury Attorney
If you have trouble claiming lost wages or calculating what you lost, talk to a personal injury lawyer. They understand Michigan’s laws around this. They can work with insurance companies for you and help make sure you get all the compensation you deserve.
In Michigan, the correlation between sustaining injuries in a car accident and the ability to claim lost wages is a critical legal issue. Understanding and complying with this requirement is essential for anyone seeking financial recovery after an accident.
For personalized assistance and advocacy in these matters, rely on the knowledge of Wigod & Falzon, dedicated car accident attorneys.
FAQs
Q: Who Pays for Lost Wages in a Car Accident?
A: In Michigan, absenteeism benefits for lost wages are generally paid by your own insurance company regardless of fault under your no-fault policy. These wage-loss benefits typically pay a percentage of your salary for a set period of time. Injured parties who suffer severe injuries may file a claim against the at-fault driver for additional compensation if the injury satisfies certain legal requirements.
Q: How Can You Prove Loss of Earnings?
A: Pay stubs, tax returns, an employer’s letter, and medical records proving your inability to work are among the most common ways to prove loss of earnings. An injured worker should always get a note from their doctor specifying any work restrictions. Self-employed workers may need to provide business records, invoices, and profit-loss statements.
Q: Are Lost Wages Actual Damages?
A: Yes, lost wages are economic losses or actual damages. The difference between lost earnings and pain and suffering is that pain and suffering do not have a set dollar value. With lost wages, you can calculate your damages based on your salary and the amount of time you missed from work. They are considered actual damages in a car accident case.
Q: What Qualifies as Lost Wages?
A: Lost wages may include salary, hourly wages, overtime pay, bonuses, commissions, and any sick pay or vacation time you used as a result of your injuries caused by the car accident. Lost wages may even include diminished earning capacity. These are recoverable damages in the event of a car accident claim.
Hire a Car Accident Lawyer at Wigod & Falzon
If you were injured in a car accident, Wigod & Falzon can help you understand car accident laws and how they apply to your lost wages. Hire a car accident lawyer with us today. Contact us for a free consultation.
