The Deadly Financial Mistakes that Surround Car Crashes
Car accidents. File them under “unfun”, “dangerous”, “life experiences I don’t want”. You can also file them under “expensive”. A car accident isn’t just composed of injuries to you and your car. Your wallet could also end up taking a pretty substantial hit, too.
You may not think it’s the most pressing concern when you’ve been in a car accident. (And, to be perfectly honest, you’re probably right.) But the financial factors should definitely be taken into account. If you’re not prepared, you could end up making some big financial mistakes.
Considering the economy and society at large
Of course, if we want to get really involved in this subject, then we can take societal costs and add them to this equation. When we think of high prices associated with car crashes, many of us will obviously think of the highest price of all. That, of course, is the loss of human life. This all results in clean-up costs and funeral costs, but it can be taken further than that.
Studies from the National Highway Traffic Safety Administration usually come with alarming results. Well, a recent NHTSA study found that an estimated $836 billion is lost in your average year as a direct result of car accidents. This takes into account the “economic loss” that the death of a person represents. Of course, the stats in the United Kingdom aren’t quite so massive. (This is more because we have a much smaller population than it is because we’re safer drivers, though!) Still, there’s no denying that this is all pretty alarming.
This might be taking the financial consequences of car crashes a bit too far for some people. Most people are definitely a lot more concerned about the immediate effects a car accident has on their own wallets. Still, there’s no denying that a lot of this information is interesting and well worth thinking about.
Of course, no-one’s thinking “I’d better not get into any car accidents – think of the effects on the economy!”. It’s understandable, and perfectly rational, to be thinking about these things in terms of your own finances. (Well, hopefully you’re putting the safety of you and others before any of that!) So let’s keep going. Let’s take a look at the financial downers that car accident cause – and how people often make it worse for themselves.
Getting your car fixed
For most people, the most obvious cost will be that of getting your car fixed. Even a fender bender – a very minor car accident – is going to incur some repair costs. (After all, you need to unbend the fender, right?) For the most part, making sure you don’t end up spending more money than you need to involves being careful about who fixes your car. Make sure they’re trustworthy and have experience with this sort of thing. You also need to get your car fixed as soon as possible – otherwise, further damage could occur. Which, of course, leads to further costs.
To be totally honest? A lot of the problems people face in this area is due to having poor equipment in the first place. If a minor car accident has resulted in major damage to the interior of your vehicle? Then there may have been something very wrong with the interior in the first place. A mild collision shouldn’t result in, say, the collapse of your brake mechanism. It shouldn’t cause a small fire to take place in your engine.
This is one of the reasons why you need to ensure you keep your car in good condition. You’ve probably heard a lot about the importance of car maintenance in the past. Doing basic car maintenance helps keep your car healthy. In this way, you can see it as similar to your body. If you’re someone who does a lot of exercise and keeps their bones and muscles strong, then you’re less likely to suffer a severe injury if you fall. Your body is better equipped to take the hit. So keep your car maintained and get it checked by a professional now and then.
Expenses related to injuries
The least pleasant one of all to think about. However, it really depends on where you live. In most places in the world, this isn’t going to be such an overwhelming concern. In the United Kingdom, you’re going to get the car you need regardless of the amount of money at your disposal. The severity of the accident and subsequent injury doesn’t really matter. This is the case for most places in the West. But if you’re in the United States, of course, it’s a completely different story.
It’s hardly a secret that medical expenses in the United States are a big, big problem. People who suddenly find themselves injured – often by sheer rotten luck – don’t just have to worry about the physical pain. They’re going to be hit with some huge medical bills that could see them being crippled financially. Sure, they could get a loan to pay off the immediate bills. But that still lands them in debt. And last time I checked, being in debt is a position none of us particularly want to be in.
Of course, if it’s a choice between not getting treated and getting yourself in debt? Then I’m probably going to have to suggest you go with the latter. This isn’t just because of the more immediate dangers to your health. It could also be a wise move from a purely financial standpoint. It does correlate with those immediate health concerns, however. If you leave something untreated, then what’s going to happen? Chances are the problem isn’t going to go away. It’s going to get worse. Other areas of your body may become injured as a result. At the end of all of this, you may find yourself no longer able to put off medical treatment, regardless of the cost. And that cost is now probably going to be higher.
So it’s probably a lot more prudent to simply get the medical attention you need and to face the bills as early as possible. Just remember that ever when paying off your bills, there are still mistakes you can make that mean you end up paying more than you have to.
Of course, no matter where you are in the world, you could end up losing money because of the downtime from work. If you’ve just broken your leg in a car accident, you’re not going to be going back to your job as a builder any time soon. If you broke your fingers on the steering wheel, you’re not going to be typing away at the office for a while yet. I won’t give you a rundown of all the possible injuries. Suffice it to say that these injuries can mean you risk being out of pocket even if you don’t end up with medical bills. That’s why it’s important you work with a lawyer for a car accident injury. If the accident wasn’t your fault, you’re probably entitled to compensation. Don’t miss the opportunity to ease the financial stress of being out of work for a while.
Car insurance mistakes
Oddly enough, one of the common and biggest financial mistakes people make here has to do with their insurance. Mistakes made following the accident – and even before the accident – can result in not getting an insurance payout.
Obviously, these aren’t mistakes you want to be making. For many people, the insurance payout is extremely important. For most people involved in accidents, it’s what alleviates the need to worry about the other problems listed in this article. So what exactly can go wrong here?
A lot of the time, the mistakes are made when signing up for the insurance policy in the first place. People tend to make the mistake many make when signing anything: they don’t read the fine print. Seriously, before you sign anything you should make sure you read the agreement in full. I’m not just talking about insurance or even anything relating to cars. Always read the small print. Pretty please. In the case of insurance companies, there could be a bunch of clauses you didn’t read. One of them may exclude you from compensation claims in this particular case.
The other most common mistakes involve the accident more directly. The first is driving in the wrong vehicle. If you’re insured to drive that particular car, then you’re making a big mistake. You’re not going to get a payout from your insurance company, and you’re probably going to end up getting fined big time for it. Another mistake involves your behaviour immediately following the accident. If at any point you claimed responsibility for the accident, didn’t inform the police, or simply drove away? Then the insurance company won’t be looking too kindly on any of that.
Being in a position where you can make an insurance claim is extremely important. Try not to make any mistakes in this area. Not only will it result in you having to pay out of pocket for repairs and potential work downtime. It could also result in you having to compensate the other driver!