If you were seriously injured in a car accident, you probably have significant medical bills. You might have even had to take time off from work. In most cases, the at-fault driver’s insurance pays for your lost income and other financial losses. However, depending on your situation, there might be other coverage options too.
Colorado’s personal injury laws address lost wages and earning capacity after a car accident. If you or your loved one has been injured in a crash, do not wait to get the help you deserve. At Olson Personal Injury Lawyers, our Colorado car accident attorneys can pursue justice on your behalf. Contact us today to schedule a free consultation.
Table of Contents
- Who Pays for Lost Wages and Earning Capacity After a Colorado Car Accident?
- Differences Between Lost Wages and Loss of Earning Capacity
- How Lost Wages Are Calculated in Colorado
- How Earning Capacity Damages Are Calculated
- Types of Evidence Used To Prove Economic Losses in a Colorado Car Accident Claim
- Get Skilled Legal Support for Your Colorado Car Accident Claim
Key Takeaways
- In Colorado, lost wages and reduced earning capacity are typically covered by the at-fault party and may involve employers, government entities, or manufacturers.
- Compensation for lost wages covers income you lost because of your recovery. Reduced earning capacity addresses your long-term future income losses and is harder to prove.
- Strong claims require evidence of fault and damages, including police reports, medical records, employment records, proof of your earning potential, and expert testimony.
Who Pays for Lost Wages and Earning Capacity After a Colorado Car Accident?
In Colorado, after a car accident, your compensation can include damages for lost wages and reduced earning capacity. Usually, these are covered by insurance, and, in some cases, you might have to make a legal claim against the at-fault party.
Who is liable for your accident depends on the details of your specific case, and may include one or more of the following:
- Another driver: A motorist is liable if their negligence contributed to the accident.
- A commercial driver’s employer: If a driver was working at the time of the crash, their employer may also be liable under the legal doctrine of respondeat superior.
- Government entities: A city, county, or state agency may be responsible if unsafe road conditions, poor maintenance, or defective road design contributed to your accident.
- Vehicle manufacturers: A vehicle manufacturer or auto parts manufacturer may be liable if a defect contributed to the crash or worsened the injuries.
What Is the Difference Between Lost Wages and Lost Earning Capacity?
Lost wages and reduced earning capacity are two distinct types of car accident compensation that a claimant can pursue. Lost wages involve the money lost because you had to take time off work in order to recover from your injuries.
When injuries prevent a victim from returning to their previous job or earning at the same level, you are missing out on future income, and this is called your reduced earning capacity. It applies if you can no longer perform the same type of work you were doing before. It also applies if you have to take a lower-paying position or reduce your working hours because of the accident.
In other words, lost wages compensate you for past income loss, and reduced earning capacity compensates you for future income loss. Assessing lost wages uses straightforward documentation. Calculating your reduced earning capacity and predicting your future financial losses usually requires expert analysis and projections.
How Are Lost Wages Calculated in Colorado?
Lost wages are calculated by determining the amount of income you would have earned if the accident had not happened, then subtracting any actual income you did receive during your recovery period. This process can differ depending on whether you held a salaried, hourly, or self-employed position.
Your attorney can help with these calculations, as they can become complex based on your circumstances. For example, if you were self-employed prior to the accident, you might need past tax returns, profit-and-loss statements, invoices, and client contracts to properly evaluate your lost wages.
How Are Earning Capacity Damages Calculated?
Calculating earning-capacity damages requires speculation and long-term financial projections. You are estimating future income loss, rather than measuring past earnings.
Generally, to determine your earning capacity damages, you will need to analyze your:
- Pre-injury earning ability: Calculating your past income, job role, education, and expected career growth will provide the baseline for your calculations.
- Post-injury earning ability: Assessing the limitations caused by the injury, your ability to return to work, and whether you need reduced hours or lower-paying work will be factored into the equation.
- Vocational expert input: A vocational expert can assess the jobs you can still do, estimate wages, and discuss whether retraining is required.
- Economic analysis: Lifetime earnings projections with and without your injury will be adjusted for inflation, your career length, and compared to your present value.
The final calculation will take your expected lifetime earnings before your injury and subtract the expected lifetime earnings after your injury. You will need comprehensive evidence collection and assessments to accurately evaluate your reduced earning capacity. An experienced attorney can help you properly evaluate your claim and advocate for your right to recover.
Types of Evidence Used To Prove Economic Losses in a Colorado Car Accident Claim
Colorado is an at-fault state. This means that whoever is found responsible for the accident must pay for the resulting damages. Economic damages are a major component of a car accident claim, including coverage for medical bills, lost wages, property damage, and other financial strains.
However, to have a successful claim, you must provide strong evidence of the other party’s fault as well as the extent of your damages. Some of the types of evidence your attorney will seek out include the following:
- Police and accident reports
- Photos and videos of the scene
- Witness statements
- Medical records documenting injuries, treatment plans, and diagnoses
- Medical bills for proof of accident-related treatment costs and ongoing care needs
- Employment records to reflect lost wages
- Expert testimony from accident reconstructionists, medical experts, and economists
- Vehicle damage reports to show repair estimates or total loss valuations
- Surveillance or dashcam footage
Get Skilled Legal Support for Your Colorado Car Accident Claim
There are a lot of factors that can complicate a Colorado personal injury claim after a car accident. Difficult insurance companies, disputed fault, and accurately calculating damages like lost wages and reduced earning capacity requires experienced legal advocacy.
Our team can help you build a strong case, protect your rights, and pursue the full compensation you are entitled to recover.
If you have been injured in a Colorado car accident, contact our team today at (303) 381-2234 for a free consultation to discuss your case and learn how we can help you move forward.
