Although cars now have adaptive headlights, backup cameras, and forward collision systems (FCS), accidents still happen. According to the National Highway Traffic Safety Administration (NHTSA) stated that 36,560 people died on the roads in 2018, and 2.71 million people were hurt in accidents and required to visit a doctor. (1)
Most car accidents have less to do with how well a driver knows how to drive and more to do with what choices they make behind the wheel. In fact, people are to blame for about 94% of all car accidents. At some point, many drivers are guilty of some of the most common mistakes that lead to car accidents. But bringing more attention to these problems can help educate drivers and, hopefully, get them to be more careful on the road. (1)
Unfortunately, car crashes are happening every day, all over the world. From small traffic benders during the morning rush hour to horrible and tragic accidents, getting behind the wheel of your car can have very serious consequences for both your physical and mental health. Surviving something like this also means having to face very high financial bills, and that can add extra stress to the already difficult situation.
Let’s see what are the ways that can help you deal with problematic financial circumstances after surviving a road accident.
What Financial Difficulties You Might Be Facing?
After a car accident, some people will have to go to the hospital and stay there until they get better. Some of them might be facing serious injuries and never recover fully. In this case, they will not only have to go through a difficult recovery process but also very big medical bills. Paying them might drain your savings and leave you without some basic necessities.
Emotional and psychological stress is also something a large number of car accident victims will have to face. These are traumatic experiences, and if you don’t appropriately deal with them, you can be left with consequences for the rest of your life.
Due to this, you will probably have to take a leave of absence from your work, and that can further damage your finances. You might even not be able to go back and do the work you did before. And even with mild injuries or no injuries at all, your vehicle would probably sustain some sort of damage, and repair will also cost you a significant amount of money.
Ways to Deal with Financial Consequences of a Car Crash
Being in a car accident means having to handle a lot of things at once. This is not easy, especially if you have to go through a trying and long recovery process. However, all is not lost for those who find themselves in this type of situation. These are some of the ways they can try and lessen the financial stress.
Filing a Personal Injury Claim
If you have to deal with medical issues due to someone else’s negligence on the road, you have the right to ask for compensation. The best person to help with your claim is an experienced and skilled lawyer. Although you can go through the legal procedure on your own, a professional who has already dealt with these types of cases will make things run smoothly while you focus on getting better.
Filing a claim means dealing with insurance adjusters, and their job is to reach a settlement as quickly and for as little money as possible. They can try and talk you into agreeing to the offer they present to you. That’s why having an attorney is a good idea. A professional will know how to talk to adjusters and how to get as big of compensation as they can.
The amount of money you receive will depend on several things, including the severity of your injuries. With the settlement you get, you will find financial stability. However, keep in mind that this procedure can be very long and that you can even end up going to court.
Be Smart with Your Money
In case you are not able to work for a certain time, make sure you notify your employer as well as your bank. If you can’t work because of the accident, you may also be eligible for disability benefits or other forms of compensation. It’s important to explore your options and understand your legal rights. You don’t want to lose your home due to circumstances that were not your fault. The first thing on your list of monthly bills should always be the mortgage. This will prevent foreclosure on your house.
The list should include all the necessary expenses. When you subtract these from your monthly budget, you will see how much is left in your bank account. It would be a good idea to cut down on all the costs that would be in this situation thought of as luxuries. Memberships and subscriptions are some of the first things that need to be eliminated.
The first step is to review your income, expenses, and debts. This will help you better understand how much money you have available to deal with the financial consequences of the car crash. Next, make a budget to help you keep track of your spending and keep your finances in order during this tough time. Make sure to put things like medical bills and car repairs at the top of your list. You may also need to consider any costs related to your recovery, like physical therapy, medicine, or other medical fees. These costs can add up quickly and make it hard to pay your bills. It’s important to prioritize these expenses and ensure that you are getting the necessary medical care to help you recover fully.
Sell What You Don’t Need
Selling things you don’t need can be a good way to earn extra money to help with car accident costs. When unforeseen expenses arise, you may need to cut back on spending and look for ways to make more money. If you have in your position something that has a certain monetary value and you are not too attached to it, it wouldn’t be a bad move to sell them.
However, before selling something, it’s important to be honest about how much it’s worth and set prices that are fair. Also, negotiate with potential buyers to ensure you get a reasonable price. You can list them on one of the famous trading sites and make your budget a bit bigger. This way, you will be able to meet the deadlines when it comes to taking care of bills.
In addition, selling things you don’t need can help you make some extra cash, but keeping this strategy in line with your overall financial goals and needs is important. It may not be practical or desirable to sell everything you own.
These are some of the things you can implement to lessen the financial burden after a car crash. It’s important to approach this situation with as much clarity as possible. If you want to know the best things to do just in case your child is injured by a car, read this post.
How Financial Stress Affects Your Health
Although money is undoubtedly important, especially after a car accident, it’s essential not to dwell on it too much. After an accident, you might have to deal with a lot of physical, mental, and financial issues. It’s easy to get caught up in how the accident will affect your finances, especially if you have a lot of medical bills or lost income. However, fretting too much over money can cause additional stress, which can worsen your overall health and well-being. Financial stress may lead to the following: (2)
- Anxiety. Money can be a safety net; you might feel vulnerable and anxious without it. And worrying about unpaid bills or losing a job can cause anxiety symptoms like sweating, a pounding heartbeat, shaking, or even panic attacks. (2)
- Withdrawal from society. Worries about money can cut off your wings and make you withdraw from friends, limit your social life, and hide in your shell, worsening your stress. (2)
- Depression. Having financial issues may make anyone feel sad, helpless, and unable to focus or make decisions. According to a study at the University of Nottingham in the UK stated that people who have trouble paying their bills are more than twice as likely to be depressed. (2)
- Physical ailments. Headaches, stomach problems, diabetes, high blood pressure, and heart disease are all examples of physical problems. In countries where healthcare isn’t free, money worries may also make you put off or skip going to the doctor out of fear of paying more medical expenses. (2)
It’s important to take steps to manage your finances and deal with any financial problems you may be having, but it’s also essential to prioritize your physical and emotional recovery. By taking a balanced approach and getting help from medical professionals, financial experts, and loved ones, you can handle the financial consequences of a car accident while putting your health as the utmost priority.
References:
(1) https://www.wkw.com/auto-accidents/blog/10-common-causes-traffic-accidents/
(2) https://www.helpguide.org/articles/stress/coping-with-financial-stress.htm