Avoid Financial Ruin After A Car Accident With These Tips
A study conducted by the NHTSA pegged the cost of auto accidents at $1 trillion per annum. The figure is without a doubt mammoth. But, it does not come close to describing the financial havoc wreaked on the lives of accident victims.
Injuries sustained in road accidents are often serious and debilitating. To add to the physical and mental agony of the victims, the total cost and the long-term financial ramifications of the mishap are never immediately apparent.
In fact, depending on the severity of the injuries, the economic effects of the accident are usually catastrophic and life transforming for the victims and their loved ones. Unfortunately, insurance adjusters are never keen on paying injured parties their just compensation. So, if you or a person you know has been in an auto mishap, this is what you need to know about the actual cost of the accident.
Immediate costs are just the tip of the iceberg!
After the accident, your most obvious expense will be your medical bills. This would include the costs of ambulance, consultation, diagnostic tests, hospital stay and treatment and medicines.
Next, you will have to take into account the property damage. If your vehicle has taken a serious hit or has been totaled, you will need to consider how you are going to pay for the repairs and alternate means of transportation.
Midterm financial effects will have to be tackled in the months to follow.
If you were hurt badly enough for your mobility to be impacted, you will have to take some time off from work. This means that while you recover, you won’t have your paychecks to rely on to fund your treatment or your living expenses.
You may need to borrow money to fund both household and medical spending. So, get ready to factor in the interest you will have to pay on such borrowings. Even if you have enough savings to see you through these trying times, you will need to add the cost of interest/gains lost on savings /investments in the total cost of the accident.
A lot of victims assume that disability benefits have their back in such a situation. The reality is that disability payments only cover a small portion of the actual cost of treatment, recovery and living. And, the nightmare does not end here!
The long term financial effects.
If your injuries were severe to the point of causing a permanent disability or have impacted your ability to work, the financial effects will have to be shouldered for a very long time.
You may need physical therapy for months, years or even for the rest of your life. This will affect your earning capacity as you will have to change your career course or opt for a position that is less strenuous than the one you held earlier. The physical effects of the injury may rob your ability to put in regular working hours. In both cases, your earning capacity will be greatly diminished.
Once again, the inflow of money will turn to a trickle but your expenses will continue to grow. If your injuries are very serious, you may need long term home care assistance and that does not come cheap.
You may suffer from chronic pain as a result of the injuries which will without a doubt impact the quality of your life as well as your relationship with your family and friends. Although this is not an “out-of-pocket” financial loss, you certainly deserve to be compensated for the mental and physical anguish.
And the mess will continue!
The financial consequences of your injuries will be both long lasting and far reaching. They may mar every aspect of your life. In fact, life as you knew it may no longer be the same.
You may no longer be able to pay your rent or mortgage. Your home may be foreclosed if you own it and if you are a renter, you may have to look for a smaller house in a less expensive area. The move will involve several ancillary costs plus the added expenses of transportation if you are moving further away from your place of work.
You may not be able to pay child support, which will lead to legal hassles and fees.
If you have enrolled in a college or vocational course, you may lose your tuition fees for the
year. You may no longer be able to support the academic costs of your children, spouse/partner.
You may have to pay more for auto insurance after being in an accident, even if the mishap was not your fault. Often insurance costs can go up by 40% or more after an accident.
To put it simply, you may go through the most taxing period of your life! The question is – Do you think you will be able to handle it all alone, while you battle physical pain?
Even if you feel you can, remember that it is almost impossible to immediately evaluate the complete and real financial cost of an accident. Besides, you are entitled to full and complete restitution. But, to make sure that insurance companies give you the compensation you deserve, you will need to have an experienced accident attorney working with you.
Don’t let the devastation of an auto accident destroy your life. An able attorney will ensure that you are compensated for your medical expenses as well as for the pain and suffering endured and the loss of life quality.