Being involved in a car accident can affect different aspects of your life, including your finances. The injuries and damages you suffer can lead to costly expenses that may result in you living paycheck to paycheck or getting into debt.
Here are four ways a car accident can impact your finances:
1. Medical expenses
You need to get treated for the injuries you sustain in a crash. You may need to cover ambulance fees, emergency room visits, hospital stays, surgery, physical therapy, medications, assistive devices and follow-up appointments. Some injuries can even result in ongoing medical expenses, which means you may need to be treated for months or years after the crash.
2. Lost wages
You will likely miss work after a car accident to recover. And if your injuries are severe, you may be unable to work for a long time. This will result in a loss of wages and benefits.
Additionally, an injury can make it impossible for you to return to your career or duties. Accordingly, you may need to switch to a low-paying job or responsibilities. Therefore, a car accident can reduce your earning capacity.
3. Property damage
The damage to your vehicle will require you to repair or replace it, which creates a financial burden. Other belongings getting damaged in the accident, such as electronics, jewelry or clothing, will also result in more expenses.
4. Other hidden costs
Being involved in a car accident can create costs that may be overlooked, but are impactful. Examples include renting a vehicle, using taxis, paying for childcare assistance while you recover if you have a child and paying insurance deductibles.
A car accident can affect your finances substantially. If you are involved in one, it’s vital to understand how to increase your chances of receiving fair compensation from the at-fault party.