Lost Wages/Lost Income

“No-fault” is a type of vehicle insurance in which each person’s own insurance company pays for injury up to a certain limit regardless of whether its insured was at fault. By “own insurance” I mean the insurance of the vehicle you were in at the time of the accident since policy provisions make you an "insured" of that vehicle.

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Personal injury protection or PIP is the name some states, such as Utah, give to their no-fault plan.

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If you live in Utah and are injured in a vehicle accident, regardless of fault, your insurance, must pay certain benefits. These benefits are known as Personal Injury Protection or "PIP". One of these benefits is “lost wages.”

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Lost Wages

No-fault pays your lost wages (or lost income if you are self employed). This coverage usually has a rather small cap such as “up to 85% of the income you lost from work, up to a maximum of $250 per week."

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Applying For Benefits 

To apply for your Personal Injury Protection benefits you need to contact your agent to report the accident. He/she will notify your insurance company who will open a file and assign a claims adjuster. Once an adjuster has been assigned contact him/her and ask for an "Application for Benefits". This is the form most insurance companies use to start the payment process.

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What About the Lost Wages That PIP/No-Fault Won’t Pay?

You will need to recover these from the insurance of the at-fault driver—as part of your injury claim.

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Ask an attorney to mail or fax to your employer a LOST WAGES REQUEST LETTER. This asks your employer's human resources department for 1) your hourly wage at time of accident, and 2) how many hours were missed because of the accident.

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Also ask your attorney to request a copy of your "work release" from your treating physician. Once attorneys have received the lost wages information from your employer and your doctor they can calculate lost wages, which is a thorough summation of the income you would have received but did not receive because of the accident.

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Conclusion

No fault or Personal Injury Protection is a system where your insurance company pays you benefits regardless of fault after a vehicle crash. These benefits usually include: medical expenses, lost income, household services and a death benefit.

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Start the process by reporting the crash to your agent. He/she will open the claim and an adjuster will be assigned by your insurance company.

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For lost wages in excess of what your PIP will pay, you will need to assist Utah attorneys in making a lost wages claim with the at-fault insurance company.