Nobody expects to get involved in a car crash as you leave home. In fact, most drivers and pedestrians take calculated actions to avoid causing a crash.
Nevertheless, the number of road accident fatalities still rose in 2020. In reality, taking extra caution to prevent a crash does not fully guarantee your safety. A distracted or intoxicated driver might still hit your car and even cause serious injuries.
When this happens, you have a right to file a claim and seek compensation from the driver at fault. However, the process is not always as straightforward as it sounds on paper. Car accident lawsuits can take years to settle depending on the surrounding circumstances. The unforeseen expenses like healthcare costs, vehicle repair, and being out of work due to injuries can eat into your savings as you wait for the settlement.
Let’s look at how a car accident messes up your finances and a few smart actions that can save your finances during and after the incident.
How an Accident Can Mess Your Finances
Lost Wages
Car accident injuries can incapacitate you, making it impossible to earn a living. It’s even worse if you are the breadwinner and have no other source of income for your family. Usually, most people turn to their savings in the hope that the legal claim will settle before funds run out.
Medical Bills
Accidents involve injuries ranging from minor skin lacerations to broken limbs and bones. Medical bills can run thousands of dollars, especially if you were seriously injured and need ongoing specialist care. While your health and auto insurance policies might pay some amount, the cost might exceed the maximum coverage amount.
Vehicle Repair
The cost of car repair will depend on the type of accident and its impact. Typically, the damage is more if the vehicles involved were at a high speed, with the possibility of a write-off.
Saving Your Finances After an Accident
Documenting Evidence from the Accident
When filing a claim, the more evidence you have, the higher your chances of getting the rightful compensation. If you cannot prove that the other driver’s negligence caused the accident and your injuries, the insurance may deny the claim or award you a lowball settlement.
If you are not too injured after the accident, take multiple images of the scene including vehicle damage, injuries, skid marks, nearby road signs, and so on. Ask anyone else who witnessed the crash to give their statement and record the audio or write it down as well.
Seeing a Doctor Immediately
Regardless of whether you feel hurt after an accident, getting a medical evaluation will save you a lot of trouble, and money.
First, it will provide more evidence of your injuries through a medical report. Second, seeing a doctor will help you calculate your total damages, including the possibility of delayed injuries. Finally, if you fail to seek medical care, the insurance company might argue that you were not seriously injured, slashing your settlement.
Get a PreSettlement Loan
If your funds are running out and you need money for a legal claim, consider applying for a presettlement loan. Here, the lender will review your case and loan you a certain percentage of your settlement which is paid after winning the lawsuit.
Presettlement funding is a popular and recommended option because it keeps you financially afloat, and there’s no obligation to pay back if your claim does not settle.
Signing a Medical Lien
A medical lien is like an agreement between you and the hospital or specialist to provide the healthcare you need on the condition that the amount will be deducted from your settlement.
If your medical bills are running high, signing a lien will save your finances because you don’t have to pay out-of-pocket.
