Accidents can be a real nightmare, and not just because of the injuries. They can mess with your finances in a big way, right away and down the line.
Even if you have insurance, there can be unexpected costs. You might have to pay a deductible, like a down payment on repairs, if there is any property damage. And there might be some things insurance doesn't cover, like lost wages if you can't work because of your injuries.
People often underestimate how much an accident can cost them. This can lead to bad decisions, like taking a lowball offer from the insurance company or not filing a claim. You can get help from an experienced personal injury attorney who can help you calculate your losses accurately and secure fair compensation.
The Financial Impact of an Accident
You should understand the financial hit an accident can bring. We'll break down the main ways your wallet can get hurt after an accident, so you can be prepared if something happens.Increased Financial Premiums
After an accident, your insurance premiums might go up. This is because insurance companies view drivers with past accidents as at higher risk. The exact increase will depend on the severity of the accident, who was at fault, and your insurance company's policies.However, studies by the Insurance Institute for Highway Safety show that at-fault accidents can lead to premium increases of up to 40% or more. This can put a strain on your finances, especially if you're already dealing with other accident-related costs.
If you disagree with your insurance company's decision to raise your rates, a lawyer can help you fight it. They can negotiate with the insurance company on your behalf to minimize the impact on your premiums.
Lost Wages
If you get hurt in an accident, you won’t be able to work for a while. This means missing out on pay checks, which can put a serious strain on your finances.Bills pile up, and it can feel impossible to catch up. If you have a family depending on you, this can be especially stressful. The lost income can make it tough to afford groceries, rent, and other necessities.
Repair Or Replacement of Damaged Properties
Your car is likely to get banged up in the accident. You’ll have to start looking at repairs or even replacing the whole thing. This can be a huge expense, on top of everything else.Even with insurance, there might be a deductible you have to pay out of pocket. Plus, depending on the damage, your insurance might not cover everything. This can leave you scrambling to figure out how to afford to fix your car, which can be a major pain.
Cost Of Surgery
Car accidents can leave you with serious injuries that might require surgery. Surgery itself is expensive, and that's not even counting the recovery time you might need afterward.There might be follow-up appointments, physical therapy, and medications to pay for. These medical costs can add up quickly, especially if you don't have good health insurance.
Cost Of Future Medication
Even after an accident seems healed, there can be hidden costs. Injuries can lead to chronic pain or other conditions that require ongoing medication.
The exact cost will vary depending on the medication needed, the dosage, and your insurance coverage. However, a 2020 report from the Kaiser Family Foundation found that the average annual spending on prescription drugs in the U.S. was more than $1,200. This number can be much higher for people with chronic conditions.
Modifications For New Way of Life
A serious accident can leave you with lasting impairments that affect your daily life. You might need modifications to your home or vehicle to accommodate your new reality, especially if your injuries are quite severe.The modifications can include wheelchair ramps, grab bars in the bathroom, or specialized equipment like shower chairs.
Even seemingly minor adjustments, like installing handrails on stairs, can add up costs quickly. The expenses of modifications can vary greatly depending on your specific needs, but it's important to factor this into the financial picture after an accident.
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