Missing work after a car accident can hit harder than the crash, especially when the bills keep coming, but your paycheck doesn’t. If someone else caused the accident, you shouldn’t have to carry that financial burden alone. California law gives you the right to recover lost wages; we can help you claim what you’re owed.

Here’s what you need to know about how lost wages are handled in California car accident claims, and how to build the strongest case possible for full compensation.

Understanding Lost Wage Claims in California

Under California law, car accident victims can seek compensation for a wide range of economic and non-economic damages, including:

  • Missed income during recovery
  • Reduced hours or modified duties due to injury
  • Lost business income for self-employed individuals
  • Diminished earning capacity for those with long-term or permanent injuries

To claim lost wages, you must show that your injuries prevented you from working and that the time away from work resulted in a measurable financial loss.

If your injury limits your ability to do your job long-term or forces you to switch careers, you may be eligible for compensation for your reduced future earning capacity.

These claims often require input from vocational experts, economists, or medical professionals who can assess the long-term impact on your career.

Documenting Your Lost Income

It’s frustrating to jump through hoops when you’re already dealing with an injury, but the more thorough your documentation, the stronger your claim.

Insurance companies won’t just take your word for it. You need clear, organized proof that shows how much income you lost and why.

Here’s what can help support your claim:

  • Pay stubs or W-2s from before the accident to establish your typical earnings
  • Tax returns (especially for independent contractors or self-employed individuals)
  • Employer verification letters confirming the days or hours you missed
  • Doctor’s notes or medical records recommending time off work
  • Statements from medical or occupational experts to support claims of long-term disability or diminished capacity

When recovering, these steps may feel overwhelming, but you don’t have to do it alone. A skilled California car accident lawyer can help you gather evidence and present a strong case to maximize your lost wage compensation.

How Fault Affects Your Compensation

California follows a pure comparative negligence rule for car accidents. That means even if you were partially at fault for the crash, you can still recover lost wages, but your percentage of fault will reduce your compensation.

For example, if you were found to be 20% at fault and your total wage loss is $10,000, you’d still be entitled to recover $8,000.

This system can benefit injured parties, but it also allows insurance companies to argue that you were more responsible than you were, to reduce their payout. An experienced lawyer can help protect your rights and push back against unfair fault assessments.

First-Party vs. Third-Party Insurance Claims

There are two main ways to seek compensation for lost wages after a crash:

  • Third-Party Claim: This would be filed against the at-fault driver’s insurance company. You can pursue the full amount of your lost wages, but the at-fault driver’s insurance will only pay up to the limits of their liability coverage. If the driver only carries minimum bodily coverage, it might not be enough to cover your total damages.
  • First-Party Claim: This would be filed under your own insurance policy, such as Uninsured/Underinsured Motorist (UM/UIM) coverage. These coverages can help if the other driver is uninsured or lacks sufficient coverage, but only up to your policy limits.

Understanding the best path to compensation often requires reviewing multiple policies and navigating strict deadlines. This is why working with a seasoned California car accident lawyer is so important. Lawyers can explore all available options and help you avoid leaving money on the table.

Get Help from a California Car Accident Lawyer

Recovering lost wages after a car accident in California isn’t automatic. It requires the correct documentation, a clear understanding of the law, and often, the help of a legal professional who knows how to deal with insurance companies.

At Berg Injury Lawyers, we’ve helped thousands of Northern Californians recover the full compensation they deserve, including lost income, medical bills, and more. If you’re struggling to get back on your feet after a car accident, we’re ready to fight for your financial recovery.

Contact Berg Injury Lawyers today for a free, no-obligation consultation.