An average of 10 million car accidents happen every year. While some drivers are lucky enough to escape these accidents without a scratch, the fact is that most people sustain injuries to themselves and their vehicles. Even after insurance, the costs associated with car accidents can be overwhelming. The following information explains exactly how a car accident will affect one’s finances:
Damage to the Car
In almost every car accident, each driver involved experiences damage to their vehicle. Any related property damage in a car accident can cost an average of $7,500. While most drivers have insurance, most states only require liability insurance so you may or may not have coverage for the actual damage to your vehicle. In the event that a driver’s insurance doesn’t cover all the costs, individuals involved in car crashes would have to cover the costs of repairs themselves.
Loss of Transportation
For many people that live in cities with limited public transportation options, driving is the only way for them to maintain their current lifestyle. If their car is totaled following an accident, this loss of transportation can seriously impact their ability to get to and from work. While many choose to rent a vehicle in this situation, some drivers’ insurance policies won’t cover the cost. If they can’t afford to pay for it on their own, they may have to miss days or weeks from work, further compounding their financial situation.
Raise in Insurance Premiums
After an accident, it’s important to get in touch with your insurance company as soon as possible. While car insurance plays a significant role in covering expenses associated with car accidents, having an accident will ultimately affect a driver’s insurance premium. Statistics show that policyholders can expect to see their insurance premiums increase up to 40% of the base rate following an accident. Though this statistic may change depending on the at-fault party in the accident, this increase in insurance premiums is another added cost that drivers should consider if they get into an accident.
Medical Bills for Related Injuries
Medical bills are another expense to consider following an accident. Regardless of the severity of the accident, it’s important to be inspected by a medical professional to document any potential damage experienced during the accident. The next step is to determine who will pay for these medical expenses. Auto accident attorneys say that they can help:
- Negotiate the terms and conditions of the case
- Can adeptly handle a variety of auto accident cases from minor to serious
- Can assist with compensation for lost wages if your accident sidelined you from work
- Provide referral assistance to local physical therapists and physicians who can help with the healing process
- Offer a genuine listening ear and a true interest in your case
Car accidents are an unfortunate reality of life. Keep this information in mind to help prepare for this type of emergency situation and the expenses that come with it.
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