Hurt in a crash and worried about money?
Victims usually think of hospital bills first and foremost. But the largest financial burden can come later… missed paychecks.
Accidents harm more than vehicles. Careers are ruined too. Rage creates physical altercations which leads to assault and battery charges on top of everything else.
Here’s the problem:
The average person tends to treat every dollar lost as the same. The law does not. There are two distinct categories of economic damages:
- Lost wages
- Loss of earning capacity
Know the difference, and you know what your claim is really worth.
Time to jump in!
What’s inside this guide:
- Why Economic Damages Matter So Much
- When Road Rage Leads To Assault And Battery Charges
- What Are Lost Wages?
- What Is Loss Of Earning Capacity?
- Lost Wages vs. Loss Of Earning Capacity Compared
- How To Prove Both Types Of Damages
Why Economic Damages Matter So Much
Economic damages are quantifiable monetary losses. Hospital bills. Repairs. Lost wages.
And the numbers are huge.
Federal statistics revealed car crashes eliminated $106 billion in lost productivity annually. Careers, salaries and home projects destroyed in mere seconds.
Pretty scary, right?
But wait, it’s personal. That national total represents actual individuals who were unable to work the following week… or ever again.
When Road Rage Leads To Assault And Battery Charges
Not every crash is an accident.
Road rage drivers become aggressive and turn their vehicles into weapons. A recent AAA study found that 11% admitted violent actions like purposely bumping into another driver’s car or getting out of their car to confront another driver.
If that occurs, the driver who was at-fault could be charged with assault and battery in criminal court. Here’s the kicker…
A criminal case punishes the driver. It doesn’t pay your rent.
In order to recoup lost income and future earnings following a road rage collision that results in assault and battery charges, victims will typically require a separate civil injury claim. A Shaker Heights car accident lawyer can discuss how both cases will progress concurrently. In fact, a guilty finding can help establish liability in the civil claim.
You don’t have to wait until the criminal case concludes. The clock is still running on civil claims.
What Are Lost Wages?
Lost wages are the pay you have already missed because of the crash.
Consider it as running backward. It starts on the day of the accident and moves forward to the day of your settlement or trial.
Lost wages can include:
- Hourly pay or salary
- Overtime you would have worked
- Bonuses and commissions
- Sick days and vacation days you had to burn
- Missed shifts for doctor visits
Math can be simple. Example: multiply your regular earnings by the time missed.
Take for instance…..If you make $1,000 per week and missed 8 weeks of work (8x weeks), your lost wages equal $8,000.
Easy, right?
One thing to keep in mind is that lost wages include partial time off as well. If you returned to work on a part-time basis while recovering, the difference between your previous wages and your decreased wages still applies.
Self-employed individuals can also file for lost wages. You just need more documentation (tax returns, invoices) to prove your earnings.
What Is Loss Of Earning Capacity?
This is where things get bigger.
Loss of earning capacity focuses on the future. It represents what you would have earned during your working years had the crash not occurred.
Here’s why it matters:
Sometimes injuries don’t completely heal. An injury to your back may leave a construction worker unable to lift anything again. An injury to your brain may affect a teacher’s ability to concentrate in a noisy room.
The person might still work. But they may have to:
- Take a lower-paying job
- Work fewer hours
- Give up a promotion
- Retire early
Loss of earning capacity puts a dollar value on that gap.
That gap can be enormous. Losing a few hundred dollars per month in pay…doesn’t seem like that big of deal. But play that out over two or three decades and you’re losing life-changing sums of money.
And, differently from lost wages, you do not need to be employed when the crash occurred to claim lost earning capacity. Even a college student or stay at home parent can suffer from lost earning capacity. The key is what you were capable of earning, not what you were actually earning.
Lost Wages vs. Loss Of Earning Capacity Compared
Still a bit confused? Totally normal.
Here’s the simplest way to think about it…
Lost wages = the past. Loss of earning capacity = the future.
| Lost Wages | Loss Of Earning Capacity | |
|---|---|---|
| Time Period | Crash to settlement | Settlement to retirement |
| How It’s Measured | Actual missed pay | Estimated future losses |
| Proof Needed | Pay stubs, tax returns | Medical and expert opinions |
| Need A Job To Claim? | Yes | No |
Typically your significant injury cases will have both. A mild injury may only require a lost wages claim. Major injury that alters your life will typically require a loss of earning capacity claim as well.
How To Prove Both Types Of Damages
Insurance companies won’t just take your word for it.
You want evidence. The more evidence you have, the less room they have to argue.
For lost wages, gather:
- Pay stubs from before the crash
- W-2s or tax returns
- A letter from your employer confirming missed time
- Doctor’s notes that say you couldn’t work
For loss of earning capacity, you’ll need more.
Longer-term claims rely heavily on experts. Medical experts testify about the permanency of your injury. Vocational experts testify about the work you can still do. Economists calculate how those losses add up over a lifetime.
They look at things like your age, education, skills and work history.
It seems like a lot….And it is. But this usually makes up the bulk of a major injury claim, so it’s worth doing correctly.
Bonus tip: Maintain a diary. Document each day you are off work, each job you cannot perform and every opportunity you pass up. Notes can become compelling evidence.
The Bottom Line
Crashes aren’t just hazardous to your health. They can steal your paycheck today and your career tomorrow. Time for a quick review:
- Lost wages cover pay you’ve already missed
- Loss of earning capacity covers money you can’t earn in the future
- While you can be charged with assault and battery for a road rage crash, civil claim is how you are compensated
- Strong records and expert help make both claims stronger
Learn the difference, count everything and settle for nothing less than your total losses. Your future income depends on it.
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