If you get hurt in a car crash, you can file a claim against the other driver’s insurance. Their policy can reimburse you for the damage to your vehicle, medical expenses and even the reduction in your earning potential that results from your injuries.
You need to have a realistic idea of what your losses will be before you settle your insurance claim. Otherwise, the company won’t have to pay you anything when you have more losses in the future. Signing a settlement before you know the full financial impact of a crash could leave you unable to recover those losses.
How do you calculate the financial impact of a car crash on your earning potential?
Look at your wages and the duration of your career
If you are in your mid-twenties and invested in a degree to make you competitive in your field, you may have anticipated moving up to better positions every few years after entering the workforce. If your injuries prevent you from working or from pursuing your intended career, you may find yourself trapped at a low-paying job or unable to work at all.
You need to look at what you made at the time of your injury and your career goals, as well as how long you intended to work before retiring to accurately estimate the value of many years of lost wages. You may be able to claim decades of lost income or reduced earning potential.
You need to consider the value of benefits as well
Your wages aren’t the only financial loss you will suffer because of career setbacks. The loss of benefits can also amount to thousands of dollars in financial losses for you every year. Health care, disability insurance and even retirement benefits can drastically increase the overall worth of the compensation package an employer offers.
You should absolutely consider benefits when estimating your financial losses caused by your inability to work. As a young professional, your losses will likely far exceed the insurance coverage available by the other driver. A civil lawsuit could give you an opportunity to seek the full value of your lost wages and benefits rather than merely claiming the maximum amount of insurance coverage the other driver had.
Realistically estimating the impact of a catastrophic car crash injury is a crucial step for those seeking justice.