The Financial Impact of Car Accidents: How To Recover Your Losses

Right after a car accident, you’re probably not thinking about the financial impact the collision will have. You’re more worried about your injuries and how long it’ll take for you to recover.

The financial nightmare begins when you return home from the hospital. Medical bills start piling up in your mailbox, your car is out of commission, and you’re so injured that you couldn’t go to work even if you wanted to. It can feel like being buried by an avalanche from which there’s no escape.

Below, you’ll learn about the financial impact of a car crash and how to recover your damages with the help of a car accident lawyer.

The Short-Term Impacts of a Car Accident

You’ll have plenty of expenses to worry about immediately after a car accident. Here are the top three:

1. Mounting Medical Expenses

Medical bills are probably the biggest expense you’ll face after being hit by a car. If your accident puts you in the hospital, your bills could add up to thousands of dollars in just days. Extended hospital stays that last for a month or more can result in bills that are six figures or higher.

You might have bills for:

• Ambulance transportation to the hospital
• Surgery
• Medication
• ICU treatment

2. The Hardship of Lost Wages

If you’ve had a minor accident and can return to work immediately, count yourself lucky. Many accident victims are so injured that they can’t return to work for weeks or months. That means no paycheck, making the prospect of paying off those mounting medical bills even more daunting.

3. Property Damage and Vehicle Repairs

You may think you can rely on your auto insurance to cover the cost of car repairs after an accident. That may be true, but sometimes, insurance doesn’t offer enough to cover every repair fully. And if your car is totaled, the insurance money you end up with for a replacement may be less than you hoped.

In any of the above scenarios, filing a claim with your auto insurance company is a double-edged sword. Insurance will cover some of your damages, but expect your premiums to increase. It’s not uncommon for premiums to go up by $50 to $100 per month after an accident.

The Long-Term Impacts of a Car Accident

Car accidents can have a far-reaching financial impact that haunts you for many years. Here are some of the challenges you might face:

Handling the Loss of Earning Potential

After your accident, maybe you’ve never been quite the same physically. Perhaps your wrist hurts when you turn it a certain way, making it incredibly hard to perform manual labor. Or perhaps you’re paralyzed from the waist down and can’t do any job that requires standing or walking.

Such impairments can be devastating to your earning potential. You might have to change jobs or switch to an entirely new industry. That could involve going back to college or months of training. You may end up with a significant pay cut, derailing your family’s financial security and your retirement plans.

Dealing With Emotional Damages

There’s a lot of talk about the injuries car accidents cause, but less attention is paid to the emotional aftermath. The psychological effects of a car accident can linger for years. You might develop debilitating anxiety that causes a severe phobia of cars, for example. Many victims develop post-traumatic stress disorder (PTSD), forcing them to relive the accident in their heads over and over again.

Accident victims are at risk for depression, too. Those who’ve lost the use of a body part or become paralyzed may yearn for the life they once enjoyed. They may be unable to work, play with their kids, participate in their favorite hobbies, and more. It’s easy to see how depression can sink its hooks into almost anyone after a serious accident.

Measuring the Impact of Long-Term Disability

If you’re permanently disabled because of your car accident, your life can be completely turned upside-down. You might have to regularly see a doctor or a physical therapist for years. You may be in chronic pain and forced to take prescription painkillers, which come with their own set of problems.

You might also need to install modifications to move around your home. Modifications such as widened doorways, wheelchair ramps, elevators, and stairlifts are expensive. Insurance usually won’t cover them, and where will the money for these modifications come from if you can’t work anymore?

Recovering Your Damages

If your car accident has left you in dire financial straits, you might wonder how to recover your damages. That depends on whether you have no-fault or traditional fault-based auto insurance.

If you live in a no-fault insurance state, you’ll have to make a claim with your own auto insurance company regardless of who caused the accident. You may only step outside of this system and sue the at-fault party if your injuries pass your state’s “serious injury” threshold.

You can file a claim with the at-fault driver’s insurance company if you have fault-based insurance. The insurer will make you a settlement offer, which you can either accept or negotiate for more.

Sometimes, the insurance company won’t want to settle or negotiate for a fair amount. Your recourse in this situation is to file a lawsuit for compensation. Here’s how to file a car accident lawsuit:

1. Hire a car accident lawyer to represent you. You’re much more likely to win your lawsuit with a lawyer, and their advice can be invaluable.
2. Have your lawyer file a complaint with the court where the accident happened.
3. Serve the defendant with the complaint and wait for a response.
4. Wait for your lawyer to complete the discovery process and take your case to trial.

We Will Help You Navigate the Financial Impact of Your Car Accident

If you’re looking for reliable legal representation or want to know how a car accident lawyer counters insurance claims, contact Accident Hotline 24/7 at (844) 343-9609 for a free consultation. We can match you with the right car accident attorney in your area.