Posted on 05/26/22

Five Ways To Reduce The Financial Impact Of An Accident

Five Ways To Reduce The Financial Impact Of An Accident

Over the course of their lifetimes behind the wheel, most drivers will have been in at least one accident. Many car accidents are minor and there is no cost to fix the car. Other car accidents can be costly. You may find that some of your regular expenses, such as your auto loan payments or car loan, are even more expensive. It is important to find a way of controlling expenses after an accident.

Maximize the benefits of your auto insurance

You will initially have expenses for emergency medical care, vehicle towing, repairs, and a rental car. A comprehensive and robust auto policy may allow you to avoid paying the deductible if you are unable to pay for significant expenses resulting from an accident. To maximize your coverage, you need to understand it. Get as much information about the driver who hit you as possible. Your insurance company will need to know if the driver was a Lyft, Uber, or cab driver.

Keep your health insurance benefits in mind

If your personal injury coverage does not cover all your medical expenses, consider your health insurance benefits. You should exhaust your auto insurance first. The other driver's policy may also cover some of these costs. To recover funds, you may be able to file a personal injury lawsuit.

Take vacation time to recover

You don't have to take time off work for recovery, but it doesn't mean that you should not be paid. Talk to your employer about how you can use your vacation and sick hours. Many people have many weeks of accrued paid time that can be used for this purpose. It is a great time to reflect on the circumstances that led to the accident and how you can improve your driving skills to prevent it from happening again. It is easy to feel like you are failing now, especially if the accident was caused by a stupid decision like driving drunk or running a red line. Failure is a step towards success. Keep your thoughts positive, write down the lessons learned and keep moving forward.

Avoid putting negative equity into a car purchase

When the vehicle is totaled, some people find themselves in a difficult position. You will have to pay the difference between the car's current value and the outstanding loan balance. Some people will use this equity to purchase a new vehicle. Unfortunately, this puts you in a position where your vehicle is almost unusable immediately. Your monthly auto loan payments will be higher than you need.

The Cost of Auto Insurance

After an accident, your car insurance premium could rise. This is especially true if your driving record has been poor. A driver's safety class may help you save money or reduce the premium increase. A newer car may be more affordable to insure.

A car accident can have a significant financial impact. Some aspects can even linger. These tips can help you reduce financial stress if you've recently been in a car accident.

Do you need help moving your car after it has been damaged? Check out our services here!