Work Loss Coverage

Also referred to as optional basic economical loss, work loss coverage is the portion of your car insurance policy that pays for lost wages due to you being involved in a car accident. It also covers the same for other people on your car insurance policy as well as other passengers in your car who may have been injured in the accident.

Actual coverage will vary by car insurance company, but some companies will pay you up to 80% of your lost wages following the accident, depending on your income. You can purchase varying amounts of coverage, so the amount you receive back will not exceed the amount of coverage you purchased.

Your insurance company may put a cap on how much you can get. If you make a large salary, work loss coverage may not amount to much and may not be worth the cost to include it on your car insurance policy.

Work loss coverage is not required, although if you are the sole breadwinner in your family, you should consider purchasing it. In the event you are in a car accident and are unable to work for days, weeks or months, your family may be in trouble financially if you do not have income coming in.