For loss of wages, can the auto insurance take into consideration my expenses that I would have incurred if I had been working?

by Nick Mangas
(Chicago, Il)

I am a limo driver and my car is my primary source of income. I have a Corporation in my name which I use to file income taxes.

I suffered back and leg pain after being rear-ended. I had 13 sessions of physical therapy and was out of work for 25 days. During that time, I visited the dr 3 times and had xrays taken plus painkillers. I incurred approx $7,000 in medical bills.

My average daily income was $275 (not including tips) for the 2 months preceeding the accident. I calculatd my loss in income to be approx $8,000 ($275 times 25 days plus 20% in tips).

I showed the auto insurance company my income tax filing from last year which does not show much in income due to the fact that I also incur lots of expenses. Also, my limo company is new and several expenses were related to start up costs.

Can the auto insurance company take into consideration my net income which would include the expenses?

Answer by Guy Parrinello

Hello Nick. I’m not licensed in Illinois, but I can tell you that generally, assuming you can prove the other party is at fault, your lost wages claim should be based upon income you actually lost.

In your case, you should be prepared to prove in some way how much you would actually have made in personal income on those days you missed from work. For example, if my client made $200 per day and it cost her $20.00 in commuting costs per day, her lost wages are still $200 per day.

In New York, I would claim the entire $200.00 in lost wages. I see no reason why you should not be able to recover all of your lost income as well. Best of luck.

Disclaimer: The author of this posting is a lawyer licensed to practice law in the State of New York. This posting is intended as general information only, is not provided as legal advice in connection with any specific case, and should not be construed to create an attorney-client relationship.

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