Does PIP cover lost wages after a Utah car accident? While personal injury protection (PIP) covers lost wages after a Utah car accident, it has limits.
The amount you get paid, for how long, and how that interacts with the rest of your claim can depend on your specific policy. Working with a Salt Lake City car accident lawyer can help you understand how much you are owed.
PIP Can Help Cover You in an Emergency
PIP is mandatory in Utah. In the event of an accident, PIP insurance kicks in to cover some expenses. Since Utah is a no-fault state, you will need to turn to your own insurance company first. However, PIP may not cover everything. It is primarily designed to cover bodily injury. PIP may cover items such as:
- Lost wages
- Medical expenses
- Essential items such as cleaning, childcare, or home maintenance
- Funeral expenses
- Death benefit for beneficiaries if someone passes away
Each auto policy is different and has varying levels of coverage. The amount of lost wages covered by PIP can vary depending on your specific policy. Understanding what PIP typically covers in Utah can help you decide the best course of action after an accident.
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PIP May Be Able to Help Supplement Lost Wages
While policies may vary, there is a minimum amount that your insurance provider must cover by law. Per Utah Code 31A-22-307, PIP must pay up to $250 per week or 85% of your gross income for lost wages, whichever is less. This wage replacement is based on your actual earnings before the accident.
Your insurer typically requires proof of earnings, such as pay stubs or an employer’s wage verification. PIP helps cover some of your lost wages, but it won’t necessarily fully replace all your lost income, especially for higher-earning workers.
You may be able to request a plan through your insurance provider that provides higher payment, but it is not standard and would likely cost more. The gap in pay is typically made up through a personal injury suit against the at-fault driver.
PIP Payments May Be Much Faster than Other Reimbursements After an Accident
Generally, once your PIP claim is approved, wage-loss benefits begin, but in some cases, there may be a brief waiting period, typically just a few days. In Utah, PIP benefits begin after you submit a claim with your insurance and provide the required documentation.
In Utah, insurers have 30 days from the date the claim is submitted to begin payment (Utah Code Section 31A-22-309). In the event that it takes some time for your claim to be approved, you will generally receive retroactive back pay.
If you are having trouble with your insurance provider, either refusing to pay your benefits or delaying the process, working with a Salt Lake City personal injury lawyer can help ensure you are treated fairly and receive your rightful payment.
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PIP Payments Do Not Last Forever
PIP lost wage benefits in Utah are temporary and capped after 52 weeks following the accident. If your recovery stretches beyond one year and you’re still unable to work, PIP will no longer pay lost income. At that point, you may need to look to other sources, such as:
- Disability benefits
- Disability insurance
- A claim against the at-fault driver, if applicable
The sooner you speak to an attorney to start your claim, the sooner you can begin receiving payments. They can also help you determine what the best next steps are if your injuries last beyond the 52-week allowance.
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Your PIP Coverage May Cover Lost Wages Even if Someone Else Caused the Accident
Your own PIP insurance covers your lost wages along with medical bills in the short term, regardless of who was at fault in the accident, because Utah is a no-fault state. Later, if appropriate, your insurer may seek reimbursement from the at-fault driver’s insurer in a process called subrogation, but that doesn’t affect your PIP payments.
If you decide to pursue a personal injury claim outside of your PIP insurance, Utah abides by a modified comparative negligence rule. This means that as long as you are less than 50% at fault, you may still be able to recover damages, minus the percentage of fault that you are found to be responsible for (Utah Code 78B-5-818).
If you were in a car accident, understanding what forms of compensation are available to you, either through PIP or an additional claim, can be challenging.
PIP Requires Specific Documentation in Utah
Filing for PIP benefits may require documentation to ensure you are receiving the correct payment. Common requirements include:
- Doctor’s notes or medical records proving you couldn’t work due to the accident,
- Employer verification of hours or pay,
- Pay stubs showing your normal income level.
Missing paperwork or vague injury reporting could delay or reduce your lost wage benefits, so it’s critical to document everything clearly. Additionally, it is essential that you submit these documents in a timely manner. The sooner you submit your documentation, the sooner you may begin receiving payment.
You May Be Entitled to Additional Lost Wage Compensation Beyond PIP
If your injuries exceed Utah’s no-fault tort threshold, such as a very serious or permanent injury, you may be able to bring a third-party claim against the at-fault driver’s liability insurance to recover items such as additional lost wages beyond the PIP cap, future income losses, pain and suffering, or other damages.
If the at-fault driver has insufficient insurance to cover these items, your own uninsured/underinsured motorist coverage may help cover lost wages that PIP doesn’t cover. The amount you qualify for would depend on your own specific insurance policy.
If your injury qualifies, short-term or long-term disability benefits through your employer or personal disability insurance may help fill the gap. This would depend on your employer and whether they provide disability benefits, as they are not obligated to do so.
Siegfried & Jensen is Here to Help
Understanding different insurance policies and coverage options can be challenging, but Siegfried & Jensen is here to help cut through all the noise.
If you have been injured in an accident and believe you are owed compensation, contact us today for your free consultation.
Call or text (801) 266-0999 or complete a Free Case Evaluation form