Can I Get Compensation for Lost Wages After a Car Accident?

March 24, 2025

If you or a loved one has been injured in a car accident, you may be wondering about the status of your car accident claim. With medical bills increasing and an inability to work due to your injuries, it’s understandable for one thing to be at the forefront of your mind: lost wages. Car accident injuries can quickly cause economic hardship when they affect your ability to work. Thankfully, Pennsylvania law generally allows for the recovery of income you’ve already lost due to the accident, but there are some additional provisions.

Where Does Compensation for Lost Wages Come From?

The first course of action in any car accident wage compensation claim is the victim’s insurance policy. Pennsylvania operates under a no-fault system, which means that lost wages from a car accident can be recovered from your insurance company, even if you were responsible for the accident. This coverage is known as personal injury protection (PIP).

Like other no-fault states, Pennsylvania requires all drivers to carry PIP to cover some or all medical bills after an accident, regardless of who’s at fault. This means that you can bring a lawsuit against the other party only if your PIP does not cover all of your medical bills.

The law is designed to keep lawsuits for minor injuries out of courtrooms and to keep car insurance premiums affordable.

Pennsylvania law also requires that your insurance company pay up to 80% of your lost wages in the event of a car accident. This payout, however, excludes the first five days of your absence from work after a car accident and is only up to the amount of your purchased policy limits.

While PIP can help with some car accident wage compensation, Pennsylvania policies often have very low limits. As such, it is highly likely that PIP will not cover the full extent of your lost wages — so you may not receive more than just a few days’ pay. Additionally, PIP doesn’t cover the loss of future earning potential.

You’ll need to file a lawsuit against the other party to pursue this compensation. Schedule a free consultation about your case and the potential viability of your lawsuit by calling (215) 569-0900.

Other Lost Wages

Lost wages also come from:

Medical Appointments: Not all doctors are available on the weekend. If you need to visit the doctor during your work week, you will need to request time off.
Reduced Activity Threshold: Some injuries will prevent you from returning to work at full capacity and require adjustments to your professional duties.
Permanent Disability: Some injuries will prevent you from working at all, eliminating your income entirely.

Lost wages are possible for a variety of reasons after a car accident. To recover all possible compensation for your losses, you’ll need to have an experienced personal injury attorney like Wapner Newman to fight for your rights and help secure the damages you deserve.

How Can You File a Lawsuit Against the Other Party?

To successfully sue the other party for lost wages in a car accident claim, you must prove that the other party was responsible for the accident and that the accident caused your injuries.

So how can you prove these vital elements of a personal injury case? You can do this by compiling evidence, such as:

Witness Statements: If there were any witnesses to the accident, get their information and ask for their on-the-record testimony.
Photographs and Videos: Pictures and videos come from cell phones, dashcams, CCTV cameras at local businesses, and streetlight cameras.
Police Reports: Law enforcement should always be summoned to the scene to give an objective report and detail who was or wasn’t at fault for the accident.

Additionally, you’ll need to prove that the car accident caused by the other party caused you to suffer lost wages. Evidence that will help prove this assertion includes:

Medical Records: Medical records will definitively demonstrate the extent of your injuries and show why you can no longer work.
Pay Stubs: If there is a significant difference in your pay before and after the accident, your pay stubs will demonstrate this disparity.
Expert Testimony: Wapner Newman works closely with several expert witnesses who can testify as to how the car accident irreparably damaged your life.
Statements From Your Boss and Coworkers: Your boss and coworkers can testify about the declining quality of your work, any observable pain, and any psychological trauma.

These forms of evidence can demonstrate that if not for the injuries caused by the accident, you would be earning your regular wages.

Can Self-Employed People Also Recover Lost Wages from a Car Accident?

The prevalence of the so-called “gig economy” has resulted in an uptick in self-employed people, including Uber drivers, pet sitters and babysitters, and DoorDash shoppers.

However, 1099 self-employed workers must provide different documentation to prove their losses after an accident. Some of the evidence they’ll need to produce includes:

Tax Returns: Tax returns will demonstrate what you, as a self-employed worker, make on average from your various clients.
Bank Statements: Bank statements will demonstrate the difference in your wages before and after the car accident.
Client Contracts: Client contracts can dictate, in writing, how much you receive as an independent contractor from your work and what you lost because of the car accident.

Whether you receive a W-2 or a 1099 at the end of the year, however, Pennsylvania law provides for recovery of lost wages.

Can You Receive Compensation for Lost Wages if You Were Partially At Fault for the Car Accident?

Even though Pennsylvania operates under a no-fault system for car insurance, it is also a state that follows a comparative negligence system. This means that you can still recover wages as long as you were less than 51% at fault for the accident.

However, your potential compensation recovery may be reduced by your percentage of fault. For example, if your lost wages total $100,000, but you were found to be 20% at fault for the accident, your potential lost wages recovery will be reduced by $20,000.

Can My Claim for Lost Wages Be Challenged?

The opposing party may not be willing to pay out what you request in lost wages compensation. As such, their attorneys will likely challenge your lost wages claim by disputing the allegation of their client’s fault. If you are found to be partially responsible for the accident, the other party’s insurance company might outright deny your claim. Additionally, if you fail to provide sufficient documentation that proves you suffered injuries and that these injuries caused you to lose wages, your claim for lost wages could be denied.

However, insurance companies want to move past your case quickly and efficiently, with as little impact as possible on their bottom line. When your lawyer presents evidence of the existence of your losses and the at-fault party’s responsibility, that party’s insurance company will likely offer you a quick settlement worth only a fraction of your initial claim. At that point, your lawyer will take a firm stance at the negotiating table and seek fair compensation on your behalf.

Let Wapner Newman, Attorneys at Law, Help You With Your Lost Wages Claim

If you or a loved one has lost wages because of a car accident, your PIP insurance is not likely to cover all of your losses. You will want to hold the other party responsible for your injuries — but you’ll need an experienced attorney to handle your case.

The attorneys at Wapner Newman are here to help. We have decades of experience handling the most complicated car accident claims, and our work has received countless accolades from satisfied clients — call (215) 569-0900 to schedule your free consultation and discuss your case.