# Lost wages claim question



## Jahzara (Jun 18, 2018)

I am claiming lost wages through Statefarm due to an accident caused by their driver. They are processing it just fine, however they are only giving me 50% of what my average wage is, stating that the IRS defines drivers as having to put the remaining 50% of their earnings towards car upkeep, maintenance, and gas. And Since I’m not driving the car, I wouldn’t have expenses.
Anyone else been told this before?


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## BigJohn (Jan 27, 2016)

First lesson about what an insurance adjuster is offering you for an accident their insured caused: They lie to pay you less.


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## hanging in there (Oct 1, 2014)

Jahzara said:


> I am claiming lost wages through Statefarm due to an accident caused by their driver. They are processing it just fine, however they are only giving me 50% of what my average wage is, stating that the IRS defines drivers as having to put the remaining 50% of their earnings towards car upkeep, maintenance, and gas. And Since I'm not driving the car, I wouldn't have expenses.
> Anyone else been told this before?


Negotiate based on average miles it takes you to generate that average income, times a reasonable cost per mile driven. Whatever they are quoting IRS as saying has no legal bearing on your settlement amount. That is between you and State Farm.

Obviously State Farm will want you to use 54.5 cents per mile, but if you feel your actual expenses are lower, like 30 cents per mile, then fight for that. It's a real game of perseverance, you have to wear them down to get something closer to what you think is fair.

In my case it took weeks of negotiation. In the end, the insurance company for the at-fault party gave me over 6 grand for being out of work for 2 and a half weeks.


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## Jahzara (Jun 18, 2018)

So I added up all my business expenses getting ready for tax filing. First year I will be filing taxes, but if I did it right, I would have 26.3% in business expenses. That is almost a quarter difference from what he is allocating. I emailed the number off to him and also brought up the subject of car depreciation. Will have to see what he says.


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## peteyvavs (Nov 18, 2015)

When dealing with an insurance company, it’s like dealing with Uber and Lyft, always bring a jar of lube.


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## ClaimsLady (Feb 14, 2019)

This sounds like sketchy and unreasonable examining. 

Have them cite their sources regarding what the IRS has to say about it. 
Your pay is your pay. I NEVER tax my claimants. I'm not the IRS and the stress of am accident is enough to deal with.

If they insist on this settlement theory, provide them with receipts on your end for any vehicle maintenance, gas, etc. Go as far back as you can with both wages and expenses so a ratio can be established. 50% seems high as hell.


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## hrswartz (Jan 4, 2019)

peteyvavs said:


> When dealing with an insurance company, it's like dealing with Uber and Lyft, always bring a jar of lube.


And a lawyer...


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## FLKeys (Dec 27, 2018)

You are in a tough position. Don't settle for less than what you think is fair. However keep in mind that while an attorney may get you more, after their fees you may come out with less. Good luck.


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## BurgerTiime (Jun 22, 2015)

They factor in vehicle depreciation. They count your gross not net. Every mile is factored in as “deduction” and vehicle expense. Be lucky they give you anything. From what many have stated in the past, they get nothing as the contract must be proven for a set amount. Something Uber will not and cannot do. You can however claim unemployment which get sticky but can be done.


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## BCS DRIVER (Oct 25, 2018)

There is always the diminished value claim you can make concerning your vehicle. Typically this would involve pulling a CarFax report showing that the vehicle was in an accident. Then go to a dealer and ask them to give a value pre accident and after accident for the vehicle.


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## uberdriverfornow (Jan 10, 2016)

there is literally no legal precedent regarding what they are saying

go back about three months and find out what your average daily pay was, send them a letter detailing it and tell them you will settle for nothing less than that amount and you will sue their driver in small claims court if they do not pay you that amount

watch how fast they pay you


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## Irishjohn831 (Aug 11, 2017)

Like a good neighbor, State Farm don’t care.


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## BigRedDriver (Nov 28, 2018)

Jahzara said:


> I am claiming lost wages through Statefarm due to an accident caused by their driver. They are processing it just fine, however they are only giving me 50% of what my average wage is, stating that the IRS defines drivers as having to put the remaining 50% of their earnings towards car upkeep, maintenance, and gas. And Since I'm not driving the car, I wouldn't have expenses.
> Anyone else been told this before?


If the car was not totaled, you still have to put that money away.

Have them supply documentation that they will provide any and all costs up to that 50% if you have future maintenance expenses in excess of what they assume.

They won't.


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## Jahzara (Jun 18, 2018)

Thanks for all the replies guys.
I sent him my receipts that detailed my expenses and they made a new (higher) offer to reflect my pay vs expenses ratio. I’m happy with the outcome.


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## Kyoz (Jan 12, 2019)

Hello I need some help.. 

So I was in a car accident. The others car liability is paying my accident. I was going to rent a car for work but I can’t, because I have my own car with my personal insurence American transit. So if I want to rent a car in NYC I can’t because everybody works with the same insurer company and I can’t be on both policy. 
What should I do?? My car is going to be at the bodyshop for 2 weeks. 


What can I do then???


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## Kerry33 (Mar 13, 2019)

Kyoz said:


> Hello I need some help..
> 
> So I was in a car accident. The others car liability is paying my accident. I was going to rent a car for work but I can't, because I have my own car with my personal insurence American transit. So if I want to rent a car in NYC I can't because everybody works with the same insurer company and I can't be on both policy.
> What should I do?? My car is going to be at the bodyshop for 2 weeks.
> ...


Got rear ended by a AAA insured car. They paid fairly for lost income. But I mitigated the damage by renting from Lyft.


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