The recovery process after an accident can be complicated. Victims often worry about recovering from physical injuries and the expenses of being unable to work. However, with the proper support, you can make a full financial recovery.
A car accident can cost you thousands of dollars in medical bills, car repair and replacement, damaged property, and loss of wages. If you account for inflation, you may need more than your savings to cover the financial losses.
Here are a few tips to help you recover financially if you have been involved in an accident,
What Is the Average Cost of a Car Accident?
Any minor or severe accident can wreak havoc on your finances. For instance, a minor accident can cost you up to $10,000 in expenses if you are an uninsured driver. A serious crash can cost you more than $100,000 in medical bills and damaged property.
Other costs to consider are mental distress, emotional distress, pain, and loss of a loved one which may be difficult to quantify. With this kind of setback, worrying about how you will recover is not unusual.
Financial Losses That May Be Caused by an Accident
A car crash can be life changing. You may suffer from bodily injuries that will last a lifetime, complications resulting from physical injuries, and financial damages. Here are some potential losses you may suffer from an accident.
- Medical expenses: It is critical to get medical care after an accident, even if you do not have any visible injuries. Any injuries from an accident have the potential to change your life as they may cause complications down the line that will cost you thousands in medical expenses. Associated costs include hospital visits, treatment, emergency room charges, ambulance fees, chiropractic care, physical therapy, and medical devices.
- Future medical costs: You may suffer injuries requiring ongoing care after an accident. Depending on your therapy needs, medical devices, loss of wages, and any lifestyle changes you may suffer, you can incur significant financial losses through future medical costs.
- Pain and suffering: Although these costs are difficult to quantify, pain and suffering are actual damages resulting from accidents. You may suffer from losing a loved one, injuries that cause you to lose a companion, and more. These damages are typically based on their severity and how long you will suffer.
- Mental anguish: This can also be categorized under emotional distress. After an accident, you may suffer mental anguish that causes you to lose focus on your job or business, resulting in financial loss.
- Lost wages: Many people cannot work after an accident, either temporarily due to shock, mental anguish, and emotional distress or permanently due to injuries. You may be eligible for compensation if you have suffered lost wages after an accident. These costs typically include future wages lost due to the loss of earning capacity.
- Property damage: You may lose property due to a car accident.
- Loss of consortium: This is the loss of benefits of marriage, such as companionship, due to an accident.
Although some of the losses listed here are non-economic, they can be recovered with the help of an experienced personal injury attorney. Your lawyer can help you file a claim and recover damages by getting a fair settlement.
Factors Determining Financial Outcome Following an Accident
Several factors determine the financial impact of an accident depending on its severity. Insurance companies will often consider the accident’s severity, impact, and pre-existing conditions to determine fair compensation.
Studies show that speeds above five miles an hour likely cause injuries. Consequently, the higher the speed of the cars involved in an accident, the more likely the insurance company will attribute your injuries to the collision.
Some other factors that may determine the financial outcome of an accident include:
Liability
If the other driver is solely responsible for the accident, it is easy to prove liability. For instance, a rear-end crash is straightforward.
However, if an accident occurs at an intersection, it may be more difficult to prove liability if both drivers claim they saw a green light.
But with the help of an experienced car lawyer, you can determine liability even in the most unclear circumstances helping you get a fair settlement.
Injuries Suffered
Generally, the greater the injuries, the more significant the financial recovery. However, to determine the nature of your injuries, you must seek medical care.
Even if you do not have any physical injuries or feel fine after an accident, you must visit a healthcare facility and document your checkup.
Many victims often suffer from internal injuries, which can take weeks to show symptoms. In some cases, you may suffer injuries that result in lifelong care, medical equipment, physical therapy, or even adjustments to your home to accommodate a disability.
When you seek medical attention immediately after an accident, you not only have a better chance at making a full recovery but also increase your chances of getting a fair settlement.
Early and consistent evidence of your injuries and treatment secures your chances at better compensation.
You cannot claim injuries with a significant impact on your lifestyle without medical proof. Failure to seek medical attention may also result in your claim being denied.
Insurance
Many accidents involve uninsured and underinsured drivers. In some states, you require a minimum insurance policy to operate a vehicle. Failure to follow this requirement can have a significant impact on the financial outcome of your case.
Many drivers ignore the minimum insurance policy requirements, so the insurance company cannot cover the damages caused by an accident.
In an accident resulting in a fatality, the insurance company cannot compensate the victim’s family if the driver is uninsured.
The Defense Attorney and Insurance Adjuster
If you have been in an accident, you know insurance adjusters can be ruthless. A defense attorney and insurance adjuster have one job, to save the insurance company money. They will do anything to downplay your injuries and rubbish your claim.
Choosing an experienced personal injury attorney can help you counter their accusations and improve your chances of getting a fair settlement.
Your Personal Injury Attorney
The personal injury attorney you choose will determine the outcome of your case. An experienced lawyer understands the system and will have the resources to thoroughly investigate your claim and determine the facts.
They are also focused on your success which gives you a better chance of success. In addition, they will also negotiate on your behalf, which saves you the emotional distress of having to relive the experience every time you talk to the liable parties.
An excellent personal injury attorney will also offer their services free of charge, saving you from additional financial distress. Most personal injury attorneys work on a contingency basis, meaning they only get paid when you win your claim.
If you are unsure whether you deserve compensation after an accident, get in touch with a personal injury attorney today to investigate the facts of your case.
How To Maximize Your Compensation After an Accident
Victims often have little to no control over the financial outcome of a car accident. However, some decisions you make immediately after the accident can improve your chances of getting a fair settlement.
If the severity of your injuries prevents you from taking these steps, your friends, family, and attorney can help. Here are the steps you need to take to maximize your compensation after a crash.
Do Not Leave the Scene of The Crash
Most states require you to stay at the crash scene and contact the police immediately if there are fatalities, injuries, or any damages that make the vehicle undrivable.
All drivers involved in the accident must also provide contact information and vehicle registration numbers to the responding police officers and other drivers involved in the accident.
If you are involved in a minor accident with no significant damages, you must provide a Driver’s Accident Report to your local authorities within 5 days.
When you are involved in a collision, call 911 to summon the police. Do not leave the scene until they arrive and investigate the crash.
Failure to stop after an accident is a crime in some states and can significantly impact your financial recovery.
Gather Information at the Crash Scene
Safely gather information at the accident scene without interfering with the first responders’ activities. Make sure to take the contact information of the other drivers involved, occupants, and witnesses.
This helps you ensure that the information on the official accident report is accurate. Collect evidence by taking photos and videos on your cell phone. This record will exhibit the exact scene of the accident better than a recreation.
In case of a hit and run where you cannot get the driver’s information, you can only recover financial compensation from your uninsured motorist coverage or medical benefits cover.
When collecting information, refrain from talking about who is at fault. You may unintentionally admit to contributing to the accident, which may reduce the value of your financial recovery.
Get Witness Information
Eyewitnesses also provide valuable information. Collect their contact information and follow up with them to get a more accurate picture of their recollection.
If there are witnesses with video or photographic evidence, take steps to obtain the footage and information about who was behind the camera. Act quickly to ensure the footage is not deleted.
Seek Medical Treatment
As discussed earlier, medical treatment is a significant determinant of financial recovery. You will likely go to the emergency room via ambulance if the accident is severe.
However, if you remain conscious and walk away from an accident, do not assume that you do not have injuries.
Visit a medical facility immediately to document any potential injuries. Maximizing your financial recovery depends on proving that your injuries occurred because of the accident. Medical reports provide this proof.
In addition, the most life-threatening injuries after an accident, such as brain damage, show symptoms hours or days after the accident. The longer you wait to see a doctor, the more difficult it is to prove that your injuries are related to the accident.
Report the Accident to Your Insurer Immediately
Most insurers require policyholders to report an accident immediately after an accident. Even if you did not suffer any injuries, you must report the damage to your car. Failure to report might result in the cancellation of your policy and loss of compensation.
When you contact your insurer, be honest. However, do not comment on who was at fault or express your feelings about the crash. Stick to the facts and let your personal injury attorney handle discussions about who is at fault for the accident.
Remember, the insurance company is a business, and they will use any information you provide to avoid compensation or pay as little as possible.
How to Recover Financially After a Car Accident
Leverage Your Insurance
The degree of financial assistance you get from your insurance depends on your policy. Insurance can help you:
- Pay for repairs.
- Cover lost wages.
- Cover the cost of a rental vehicle.
- Cover some medical expenses.
- Compensate victims if you were at fault.
You can ease your path to financial recovery if you have a comprehensive policy that ensures you do not pay for too many damages out of pocket.
If you cannot afford a comprehensive policy, consider a third-party cover or third-party and theft cover. Always ensure you have insurance, even if it is not a requirement in your state.
Tap Into Your Savings
Always save for a rainy day. Use your emergency savings to help you recover financially after an accident. If you do not have emergency funds, use your retirement fund to ease your financial distress.
However, there are tax implications and sanctions on using your retirement fund, and you might also lose interest on the funds you withdraw. We advise that you use your retirement fund only as a last resort.
Crowdfund
After a car accident, it can be challenging to recover the expenses when they run up to thousands of dollars.
Fortunately, platforms such as GoFundMe, JustGiving, and Fundrazr make it easy to ask for public help.
When crowdfunding, use the most suitable platform for your needs and choose the most ideal campaigns. All crowdfunding platforms come with terms and conditions, so consider consulting a lawyer if you do not understand them.
Summary
A car insurance company looks good on paper, but they are a business focused on making profits. Retaining a personal injury attorney ensures that you have someone focused on a successful outcome for you.
A lawyer will help you fight for your right to full financial recovery by investigating your claim and negotiating fair compensation for your injuries, pain and suffering, emotional distress, loss of wages, and life-long medical expenses, among others.
Get in touch with a personal injury attorney to learn everything you need about making a full financial recovery after a car accident.