Financial Recovery After a Car Accident

After a car accident, your first thought should be making sure you and all your passengers are okay, and then you should check on anyone in other involved vehicles. Once that’s established, your next concern is likely to be how much the situation will cost you, and that might stress you even if you’re the innocent driver. Even if every driver has insurance, deductibles and uncovered expenses might exist. You should know the financial implications of car accidents and what you can do to overcome the challenges.

The Financial Implications of a Car Accident

A car accident can impact you mentally and physically, and people usually focus on these effects. However, with or without those elements, financial consequences can happen in any accident and might take time to be noticeable. A minor accident with an uninsured driver might rack up $10,000, but a significant accident might cost $100,000 or more.

The Unexpected Costs

Insurance often covers vehicle damage, medical bills, and lost wages. However, other things might happen because of a crash that insurance won’t cover, such as childcare, alternative transportation, and home or vehicle modifications necessary for disabilities, permanent or otherwise. These costs can add up fast, and a personal injury claim might be the only way to recoup the money you spend on them. Damages from a car accident may also include, medical expenses, lost wages, property damages, pain and suffering and emotional distress.

Higher Insurance Premiums

Some states let auto insurance providers raise the premiums for policyholders regardless of whether they were determined to be at fault for an accident. Other states prohibit insurers from raising rates for anyone identified in no-fault accidents. It’s always a good idea to shop for new car insurance at renewal time to see who has the best deal, but it can be even more pertinent after an accident.

Future Damages

If you’re the victim in a car accident, don’t leap on initial settlement offers because you need money, especially if you aren’t yet aware of how extensive your damages are. Vehicle repairs and initial medical bills are evident and immediate expenses, but you might also face diminished earning capacity and continuing medical care. Failing to provide for these might eat your savings and even drive you to bankruptcy.

Strategies for Overcoming the Challenges

Your economic recovery after a car accident can be a long and daunting process, but it is possible when you follow the proper steps.

Track Everything

Track every bill and expense you have after an accident, whether related or not. You might need this information to pursue insurance claims or personal injury damages, but you also need it to ensure you know how much you spend. Tracking your budget closely is crucial if your expenses go up or your income goes down—both can happen after an accident. Automate payments whenever possible so you don’t miss any deadlines.

Find an Attorney

Auto insurance companies can put on a good show about how much they care about you, but they will offer you little money in most cases. Initial settlement offers are usually as low as they think they can get away with because they know most accident victims are looking for quick cash and closure. Get a personal injury lawyer to deal with them and get you what you deserve.

Ask for Assistance

Find a professional financial advisor if you need help with the money management aspects of your life after a crash. Ask for help from friends and family for any personal challenges andtalk to coworkers and bosses about changes you might need with your employment. If need be, reach out to charitable organizations in your area or even look into crowdfunding.

Things Can Get Better

A car accident can destroy your peace of mind and remove you from the feelings of safety you might enjoy most days. However, you can regain those things, along with your health and money. Use these tips to make a plan, get professional and personal help when you need it, and take things one day at a time.