Crippling Collisions: 5 Ways Car Accidents Can T-Bone Your Finances

Crippling Collisions: 5 Ways Car Accidents Can T-Bone Your Finances
  • Opening Intro -

    Car accidents occur out of the blue, and no driver is immune from this possibility any time he or she is on the road.

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While minor fender benders may have only a minimal impact on your finances, a significant accident can wreak havoc on your financial situation. In fact, it can affect you in each of these ways. The question is, are you prepared enough to weather the consequences of a car accident?

An Auto Insurance Deductible

Because of the damage to your car, you likely will file an insurance claim. This is especially true if you caused the accident and are responsible for property damage you caused to other people. A typical deductible is $500, but you may have a deductible between $250 to $1,000 or higher. This is only one of many expenses that you may be responsible for after a car accident.

The Cost of a New Vehicle

If your insurance company declares a total loss on your vehicle, it will pay off the outstanding loan balance up to the limits of your policy. Some drivers may discover that their coverage will not pay off the entire loan balance, and this means that you will need to come out-of-pocket for the remainder of the loan balance. In addition, you may have to pay for the cost of a new vehicle at a moment’s notice.

Medical Bills

In serious and even moderate accidents, you or passengers in your vehicle may be injured. Your health insurance coverage may pay for some of these expenses, and you may also have personal injury coverage on your auto policy. However, you may still be responsible for co-pays, out-of-network expenses and more. In addition, you may have to pay for any expenses not covered by your auto or health insurance policies.

The Psychological Impact

An accident can be a traumatic event. It can cause post-traumatic stress disorder, or PTSD. In addition, you may have frequent nightmares, a fear of getting behind the wheel and more. Therapy or psychological treatment may be necessary to help you move past these issues, and there is a cost for these treatment options.

Lost Wages

After a car accident, you may need to take time off of work to deal with filing a claim, getting a rental car or buying a new car. You also may need to recover from your injuries or tend to family members who have been seriously injured. Lost wages can create substantial hardship, and this is especially true when you also have mounting medical bills.

Law firms such as Abels & Annes, P.C. may help you to recover lost wages through a personal injury lawsuit.

When you have been involved in an accident that is caused by another party, that party is responsible for all damages that they cause. Even if their insurance coverage is not sufficient to pay all of the expenses, they are required to come out-of-pocket to pay for all expenses. If you are not able to reach an amicable resolution on your own, a civil lawsuit may help you to get the full amount of money owed to you.

Consumer Tips reference:

lower monthly bills guide

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Categories: Autos Express

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