The Financial Costs Of A Road Accident (And How To Deal With Them)

Every year in the US, there are over ten million car accidents on our roads. While there is understandably a personal and emotional cost involved in these situations, there is also the financial cost to consider. Most drivers will experience at least one accident in their lifetime, no matter how safe they consider themselves to be. If you are one of the fortunate few and have never had an accident, it still pays to be aware of the costs involved.

In this article, we will talk about some of the financial costs incurred after a road accident. While we hope you never have to go through the trauma, we have some tips on how you can save money as you begin the road to recovery and get back on your feet again.

Higher insurance premium

After a minor accident, your insurance company may look gracefully upon you and not raise your premium. However, in more serious cases, you can expect to pay significantly more on your insurance after a claim. You will also lose your good driver discount to add to your woes. If there isn’t a lot of damage involved, you might agree to settle with the other driver and avoid going to your insurance company altogether. This will save you money, and you will maintain your spotless record.

Legal costs

If the third-party insurance company doesn’t pay up, and you struggle to prove the other driver’s negligence, you may need to hire an attorney to ensure justice is done. Make sure you hire a reputable attorney, such as Hausmann-Mcnally, as there are many lawyers looking to make a fast buck who may not get you the best deal.

Car repairs

If you have comprehensive car insurance, your insurer should cover the costs in getting your car back on the road. However, if you don’t have the right coverage, you will be liable to pay for the repairs yourself. This may be expensive, so you might want to determine whether the cost is worth it. If you have an older car, or the damage is extensive, it may be worth you selling it for junk and getting a new car. Alternatively, visit a mechanic you trust to get the work done, as you don’t want to incur more expense by getting ripped off.

Medical bills

Your car insurance policy may cover you for medical costs, although there may be a period when you are out of pocket as it can take a while to sort out a claim. However, you will reduce the costs involved if you already have health insurance. Should not that be an option, you will eventually get reimbursed for your medical expenses. In the meantime, you should keep track of what you have had to spend, including travel costs to the hospital, and present the bill to your insurance company with any proof of the expense.

Final thought

It is always a good idea to save into an emergency fund for unexpected situations. The trauma of a car accident is bad enough without the monetary expense, so having some money saved will reduce your burden.

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