How To Handle Finances After A Car Accident

Car Accident

Car accidents are expensive, and in situations involving injuries or fatalities, the loss may never be compensated.

For those experiencing the aftermath of a motor crash, the monetary costs are a burden. The cost of auto crashes is high. Average totals for liability and collision claims in 2013 averaged approximately $3,200. Incidents involving injuries had significantly higher claims: almost $15,500.

In a period where many Americans do not have sufficient funds to survive without work, the disconcerting fact is that a single car accident can have profound consequences on an individual’s livelihood.

However, there are several tactics to reduce the weight of after-crash expenses.

1. Contact Work Immediately

Contacting work as soon as possible has two advantages. First, it secures an employee’s position so that he or she can return to work. Almost all employers understand a car accident is beyond their worker’s control.

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Secondly, some employers may work with employees to aid them financially. If possible, offer to complete tasks from home or take an unused paid vacation to alleviate the cost of the crash. Managers may even propose paid leave.

2. Utilize Insurance

Always contact your car insurance and health insurance companies to understand what costs will be covered and what expenses are out of pocket.

Depending on your coverage and state laws, you may be able to file a claim with your own insurance company to receive funds. Personal injury protection (PIP), for example, covers medical expenses without considering which driver was at fault.

Similarly, some healthcare plans will cover more than others. Healthcare companies typically aid policyholders after auto insurance and other payment forms are submitted. Only then will health insurance businesses begin paying, and standard expectations concerning deductibles, copayments and covered services apply.

Make a list of what your insurance should cover and what you will pay so that you can prepare.

3. Speak To Multiple Repair Centers

According to a study on America’s commuting choices, almost 80% of Americans rely on their vehicles to get to work. When an automobile is out of commission, most employees are forced to address this issue quickly.

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Therefore, it only makes sense that car crash victims should do everything in their power to reduce the costs of repairs. The easiest method to obtain a reasonable price is to contact multiple automotive care centers and compare costs.

4. Call The Bank

Many individuals are reluctant to request assistance after an accident, but doing so can help financially. In fact, some banks will offer aid for their customers through a process called mortgage forbearance. This is an agreement between you and the bank that temporarily suspends or reduces a loan payment.

Banks offer this support to loyal customers who are facing financial duress.

5. Cancel Unnecessary Subscriptions Or Downgrade

It’s amazing how much extra money we spend each month that could be deposited into savings. Make a list of your expenses and contemplate what could be omitted or downgraded to save on costs.

Rather than paying for a gym membership, for instance, consider exercising at home or outside until your finances are secure.

6. Schedule A Consultation With An Attorney

Especially if you suffered from an injury or fatality or if you are facing unfair insurance claim denials, contact an attorney. Attorneys understand the expensive consequences of crashes; for this reason, many are paid only through contingency fees.

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Attorneys can increase your compensation to help pay for medical bills, lost wages, and treatment. If you live in the New York area, a Long Island personal injury lawyer can offer extensive support.

7. Loans

If necessary, consider taking out a loan or placing payments on a credit card. Do this only if it’s absolutely necessary, as the accrued interest can cause further damage down the road.

However, if you feel you could pay back the loan in a short time frame, it may be a viable option.

Turn Your Life Right-Side Up

Car crashes can turn a person’s life upside down, but they don’t have to take every penny you own. Use these tips to avoid financial catastrophes and flip your life right-side up.