If a crash takes you off the job—even for a few weeks—the lost income can be brutal. In Kentucky, money for missed work can come from two lanes:
- PIP wage loss (no-fault) under the MVRA—fast, short-term help from your own policy; and
- Tort wage loss (and diminished earning capacity) from the at-fault party once you’re outside no-fault.
Below we explain how each works, how to prove the losses (W-2, self-employed, and gig), and what deadlines/interest rules apply—plus practical examples and a download-ready proof list.
Part 1 — PIP wage loss (no-fault): what it pays and how fast
What PIP is: Kentucky’s MVRA pays basic reparation benefits (BRB) for your net economic loss from a motor-vehicle injury—medical bills, a portion of lost wages, and certain replacement services—up to the policy cap (commonly $10,000 unless you bought more). Justia Law
How much for wages?
- By statute, PIP reimburses net income loss (your gross pay minus the “income-tax advantage,” often described as up to ~15%—the idea is that take-home pay is less than gross). The weekly total payable for wage loss plus replacement-services may not exceed $200/week unless you purchased added reparation benefits. Legislative Research Commission
- Payments must be made monthly as loss accrues and are overdue if not paid within 30 days after the insurer has reasonable proof. Overdue PIP accrues 12% interest—or 18% if the delay lacked a reasonable foundation—plus potential attorney’s fees for unreasonable denials/delays. Legislative Research Commission
Why use PIP even if the other driver is at fault?
It’s the fastest way to keep cash flowing while liability sorts out. You can pursue the at-fault party later for anything PIP doesn’t cover.
Part 2 — Tort wage loss & diminished earning capacity (fault-based)
Once you’re outside no-fault (e.g., medical expenses exceed $1,000 or you suffered specific serious injuries), you can claim full wage loss and loss of earning capacity against the at-fault party (or parties: driver, motor carrier, broker, shipper, maintenance vendor in commercial cases). Tort claims aren’t constrained by the PIP weekly cap. (PIP may be reimbursed later through subrogation/offset accounting.) Justia Law
What you can claim in tort (examples):
- Past wage loss not covered by PIP (gross wages/earnings).
- Future wage loss during recovery.
- Diminished earning capacity if you can no longer perform your prior work or must reduce hours/accept lower pay.
- Employment benefits (lost overtime eligibility, shift diffs, bonus structures) when provable.
How to prove missed work (with examples by worker type)
Think “math + receipts.” The insurer or jury needs a clean, documentary path from what you earned → what you missed → why the crash caused it.
A) W-2 / hourly / salaried workers
Core set:
- Last 6–12 months of pay stubs (or payroll export), W-2s, and an employer letter verifying: job title/duties, normal schedule, hourly rate/salary, typical overtime/bonuses, dates missed, and any light-duty offers.
- Doctor’s restrictions (off work, light duty, reduced hours) and physical-therapy schedules.
- Calendar (Google/Outlook) showing shifts missed and medical appointments.
Example:
Erin (warehouse picker) made $21/hour + frequent OT. After a rear-end crash, she’s on a 15-lb lift restriction. Employer confirms no light duty exists. PIP pays $200/week; tort claim seeks the balance of lost wages + loss of overtime opportunity during recovery.
B) Self-employed / 1099 / gig workers
Core set:
- Tax returns (Schedule C/K-1), 1099s, client invoices, P&Ls, bank statements, and a pre- vs. post-injury revenue comparison.
- Booking calendars showing cancellations, signed contracts lost, and correspondence where clients rescheduled or hired substitutes.
- Documentation of variable costs (to prove net loss, not gross receipts).
- If needed: CPA declaration or forensic accounting summary.
Example:
Luis (owner-operator courier) averages $1,650/week gross with $450/week costs (fuel, insurance, leasing). Crash sidelines his van 6 weeks; his net is ~$1,200/week. PIP covers only $200/week → tort claim documents the additional $1,000/week plus lost routes he couldn’t service.
C) Salaried professionals with bonuses/commission
Core set:
- Compensation plan, prior-year and YTD bonus/commission statements, pipeline/CRM snapshots (lost deals), and employer letter on quota relief (or lack of it).
- Doctor’s restrictions tying missed travel/client visits to injury.
Example:
A rep misses Q3 travel during recovery and loses tiered commissions. We model what the rep typically earns versus the quarter when travel was medically restricted.
Replacement services (when wage loss doesn’t fit)
If you’re not “missing a paycheck” but can’t perform essential tasks (childcare, housekeeping, eldercare) you previously provided, replacement-services loss may apply. Note: PIP treats wage loss + replacement services together under the $200/week cap unless you bought added benefits. Legislative Research Commission
Diminished earning capacity (the long-tail loss)
When injuries permanently limit what you can do (no more ladder work, commercial driving, patient transfers, etc.), the law allows claims for reduced earning capacity—even if you returned to some work.
How we build it:
- Physician restrictions (permanent impairment; job-duty limits).
- Functional Capacity Evaluation (FCE) documenting safe lift/carry/stand/sit tolerances.
- Vocational rehabilitation expert: translates restrictions into job options, wages, and labor-market data.
- Economic expert: projects lifetime wage loss, fringe benefits, and present value.
Deadlines, interest, and practical timing
- PIP payments: due monthly as loss accrues; overdue at 30 days after reasonable proof → 12% interest (or 18% if delay lacked reasonable foundation), possible attorney’s fees. Legislative Research Commission
- Tort lawsuit deadline (auto cases): generally 2 years from the injury or death or the date of the last PIP payment, whichever is latest (nuances apply—don’t wait). Justia Law
Quick checklist (copy/paste into a sidebar or downloadable)
Bring these to your consult (or upload to our portal):
- Pay stubs (6–12 mo.), W-2/1099s, most recent tax return (with schedules).
- Employer letter verifying missed dates, wage rate, and availability of light duty.
- For self-employed/gig: invoices, P&Ls, bank statements, booking calendar, emails showing lost work.
- Doctor’s work restrictions, PT schedule, and any FCE reports.
- Calendar of every day missed or reduced hours.
- Any insurance letters about PIP, wage loss, or denials.
How Morrin Law Office helps (so you’re not doing this alone)
- Turn on PIP quickly — We submit complete, organized proof so you get paid under the MVRA fast (and we hold carriers to the 30-day rule with interest when needed). Legislative Research Commission
- Build the tort wage-loss case — We gather employer records, schedule FCEs, and retain vocational + economic experts to model future loss and diminished capacity.
- Commercial-vehicle advantage — In truck/van/bus cases, we also pursue every responsible party (carrier, broker, shipper, maintenance vendor) to reach all available coverage.
- Self-employed clarity — We work with your CPA or bring one in to present net loss correctly (so you’re not penalized for business expenses or seasonality).
- No upfront fees — Free consult; contingency fee (we’re paid only if we recover).
FAQs
Does PIP cover my full paycheck?
No. PIP pays net wage loss and is subject to a $200/week cap (combined with replacement services) unless you bought added reparation benefits. Legislative Research Commission
—
What if my insurer sits on my PIP claim?
After 30 days with reasonable proof, benefits are overdue and interest applies (12% or 18% if the delay lacked a reasonable foundation), with potential attorney’s fees. Legislative Research Commission
—
When can I claim full wage loss from the at-fault driver?
When you’re outside no-fault (e.g., over the tort threshold) you can claim full wage loss and diminished capacity in tort. (PIP is still useful early, then reconciled later.) Justia Law
—
I’m self-employed. What proves my loss?
Tax returns, 1099s, P&Ls, invoices, bank statements, calendars of canceled work, and client correspondence—plus a clear before/after comparison.
—
References & Further Reading
Internal resources
Kentucky MVRA statutes
- KRS 304.39-020 (definitions; BRB for net loss; typical $10,000 cap). Legislative Research Commission
- KRS 304.39-130 (weekly limit—$200/week for work loss + replacement services under basic PIP). Legislative Research Commission
- KRS 304.39-210 (PIP due monthly; overdue at 30 days; 12%/18% interest; fees). Legislative Research Commission
- KRS 304.39-230 (tort SOL keyed to injury/death/last PIP payment—2 years, with nuances). Legislative Research Commission
Recent Kentucky case note on PIP interest/fees
Erie Ins. Exch. v. Johnson, PLLC (Ky. 2025) — affirms 18% where delay lacked reasonable foundation; fees awarded. (Procedural posture differs; good for interest/fees leverage.) CaseLaw
0 Comments