What is work loss car insurance coverage?
Work loss is an optional insurance policy that assists drivers in recouping some of the wages lost due to a medical injury caused in a car accident. This type of policy is also called optional basic economical loss.
What all does work loss insurance cover?
Work loss coverage is designed to assist people by compensating them for a portion of lost pay missed because of an injury or disability caused by a car collision. Unlike liability coverage where it protects the vehicle only the insured driver on the insurance policy is covered, but work loss will also cover the other insured drivers on the policy, as well as any passengers with you when the accident occurs.
Like any insurance policy, there is a limit to what an auto insurance policy will pay. Many policies will pay up to 80% of the missing paychecks. However, some will pay a lesser percentage. Your income level will determine the percentage you qualify for. The insurance company will not pay out more than the level of insurance you have purchased.
There are eligibility requirements for claiming work loss benefits. The insured driver must actually be in an income earning situation in order to get compensation for lost wages. If the driver is unemployed at the time of the accident, they may find it difficult to claim work loss benefits.
Another advantage to work loss coverage is that it gives drivers more control over the use of their monetary benefits. In other types of insurance coverage, medical providers are billed in the order they are received by the car insurance company. Work loss coverage is often a weekly benefit paid to you and can be used for personal expenses, medical bills, therapy, or for anything you need.