Car accidents can have devastating effects on the victim physically, emotionally, and financially. Apart from dealing with pain and injuries, you’ll suffer financial losses due to hefty medical bills and car damage repairs. In addition, you may also lose your income due to missed work.
Paying the mounting expenses that come with a car accident can take a toll on your financial health. The amount of money you will spend will depend on the magnitude of the accident.
If you don’t get any compensation from your car insurance or the other party, you’ll have to bear the burden out of your pockets.
This article outlines some of the ways a car accident can affect your personal finances.
When you get into an accident, the first you’ll do is seek medical help. Even the slightest injury can cost a lot of money to treat. Apart from the physical injuries, there are also post-traumatic stress disorder and anxiety resulting from the accident. You’ll need to pay for physiotherapy as well.
Medical expenses are the most expensive things you’ll have to deal with after an accident. To make it worse, they’re not a one-time cost, as they’ll pile up over time depending on the severity of your injuries.
If you suffer severe injuries and must be incapacitated for some time, you’ll have to bear the long-term treatment, which will cost you a fortune. You’ll have to deal with the initial cost of treatment and still part with a lot of money for checkups and rehabilitation.
During your recovery period after an accident, you won’t be in a position to go back to work or your daily routine.
Whether you’re employed or running your own business, you won’t carry out your activities as you did in the past. Unless you have some passive income, not going to work means not earning any money.
If you’re employed and miss work for a substantial amount of time, you might lose your job. Even worse, you may lose your ability to carry out the tasks that you used to do before because of incapacitation. The lost ability to work means lost income.
Vehicle Repair Costs
If you were driving when the accident occurred, you’d end up with a severely damaged car. If the collision is not so bad, you must deal with repair costs. However, if the accident is bad enough, your car may be completely wrecked, and you’ll need a replacement.
Whether it’s a repair or a replacement of your car, it will still cost you money, leading to financial losses. Even if you have insurance coverage for your vehicle, their coverage may not be enough for repair or replacement expenses.
If you cause an accident or share the blame, you’ll have to deal with increased premiums on your insurance. After an accident, insurance premiums will increase by about 42%. The exact rate will depend on your insurer and the severity of the accident.
Insurance companies will see you as risky to insure and will charge you more for every claim you make. Even a small increase in your insurance will have a strong implication on your finances. The more traffic tickets you get, the higher your premiums will go.
Apart from the increased premiums, there are also insurance deductibles. This money comes from your pocket to cover part of the costs incurred after an accident. For instance, if your deductible is $300, you’ll have to pay that amount to cover expenses such as your car repair costs.
Long-Term Rehabilitation Costs
Depending on the nature of your injuries, you may need to undergo a period of rehabilitation to heal completely.
Minor injuries such as whiplash soft tissue injuries require you to undergo some sessions with your chiropractor or physiotherapist. Since these injuries only take a few months to heal, you’ll only undergo these sessions for a short period.
For serious injuries such as broken limbs or traumatic brain injuries, you may take quite a long term to gain full recovery. You must adhere to a strict treatment plan and follow your doctor’s advice to recover.
Like other medical expenses, rehabilitation costs are not cheap and might drain you financially. If you don’t have medical coverage, you’ll have to bear hefty medical expenses for several years.
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Legal fees may not come to your mind immediately after an accident, but they are some of the expenses you’ll have to deal with. If someone else causes the accident, you shouldn’t bear the expenses all by yourself. You need to file a personal injury claim and get your compensation.
Sometimes, the only way to win the battle and get fair compensation is to work with a personal injury lawyer.
Without the help of a lawyer, insurance companies can talk you into settling for low compensation or deny your claim altogether.
While many lawyers can work on a contingency basis, you’ll still have to pay them at the end of the day. If you feel like you have a minor case that you can handle yourself, consider representing yourself.
Car accidents not only cause injuries to victims but also come with hefty financial expenses. Apart from the medical bills and car repair expenses, you’ll also suffer lost income because of your inability to go back to work during your recovery period.
There’s no doubt that your life will drastically change after an accident. You might not be able to afford some basic financial needs during your recovery period. Even if you file a car accident compensation claim, it will take some time to get the money, and you’ll be forced to go back into your pockets.
It’s important to protect yourself emotionally and financially during this period so you don’t end up in a state of despair.
Talk to experts and ask for help from other people to help you deal with the emotional trauma. Your physical, emotional, and financial recovery will depend on your post-accident recovery measures.