Car accidents generally occur without warning and take place over the course of just a few seconds. However, those few seconds could have a significant impact on your long-term financial situation. The good news is that you may be entitled to financial compensation from the person or entity responsible for causing the crash to occur.
Car Repairs
It can cost thousands of dollars to repair your vehicle even if the collision occurred at a relatively low speed. If the cost to repair the vehicle is higher than its market value, your insurance company may refuse to pay to fix it. Instead, you will get a check for the vehicle’s market value, which could be less than the balance of your car loan. Even if your insurance company does pay for the damage, you may still have to pay a deductible. That’s the amount you’re responsible for paying before your insurance policy kicks in. It may be a good idea to check with your insurance company to determine how much you would owe if an accident occurs.
Medical Expenses
Sometimes you can be compensated for your medical expenses, so make sure you document everything to determine how much your personal case is worth. These expenses could include the cost of emergency medical care, medications, surgery or physical therapy. Compensation could also be available to help pay for an in-home nurse or any other assistance that you may need in your recovery.
You Might Not Be Able To Work Again
There is a chance that injuries sustained in a car accident will prevent you from working in the future. If you are able to work, it may be on a part-time basis or in a field that pays less than your current job does. Therefore, you will need to prepare for a significant or total loss of income after a car crash. If the collision was your fault, you will likely be responsible for filling in that financial gap yourself. If you were the victim of another’s negligence, you may be able to recover your lost wages.
While you can’t know when a car accident will occur, there are steps that you can take to prepare for the resulting financial fallout. Ideally, you will review your insurance policies to ensure that you have adequate coverage—whether the accident is your fault or not. It is also worthwhile to start building an emergency fund that can last until you receive a settlement check from whoever caused the crash.
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