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On a car insurance policy what does loss of income cover?


A

It will depend upon the terms of your car insurance policy what your loss of income or lost wages benefits will cover. Typically this coverage helps pay lost wages due to injuries from an automobile accident, so the income that the policyholder was unable to earn due to an accident.

Income loss coverage on your auto insurance policy is designed to help you recover a certain percentage of your lost wages due to a car accident. Each insurance policy varies regarding the amount of loss of income coverage.

Income loss coverage protects you if you are unable to work due to accident-related injuries. Normally this auto insurance coverage helps you recover portions of your lost salary. For example in Florida Personal Injury Protection (PIP) will cover up to 60 percent of disability benefits for lost gross income and earning capacity, after payment for medical expenses, up to the PIP $10,000 limit.

In New York their no-fault insurance pays 80% of lost earnings from work, up to a maximum payment of $2,000 per month for up to three years from the date of the accident; subject to statutory offsets for New York State disability, Worker's Compensation and Federal Social Security disability benefits.

If you buy optional loss of income coverage (also known as work loss or Optional Basic Economical Loss) this coverage helps you, drivers listed on your policy, and your passengers recover lost wages if you are unable to work due to accident-related injuries. For example in Pennsylvania income loss coverage pays a portion of your lost wages when injuries sustained in an auto accident keep you from working.

If you have PIP coverage then usually it comes with some loss of income coverage and you can read through your policy to see what this coverage entails. If you do not have PIP then you can buy optional loss of income or work loss coverage that pays a portion of wages you were unable to earn due to your injuries sustained in an auto accident. Again to find out the details of what this coverage would include you would need to read through your policy or speak to your agent.

CarInsurance.com can help you find the right coverage for your needs. Use our insurance coverage calculator to see what coverages are best for you and your situation.

This coverage calculator offers basic recommendations for typical coverage, limits, and deductibles needed based on the answers you provide. Use this coverage calculator as a guide in choosing the coverage that's right for you. Always get the most coverage you can afford to ensure that you and your family are always protected. Once you are certain of the coverages you want to obtain then get started with a low cost car insurance quote.


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