4 Ways to Keep an Auto Accident from Destroying Your Finances

Wednesday, August 12, 2015, AM | 32 Comments

Auto accidents are traumatizing for anyone. From the physical trauma of the accident itself to the headaches that come from dealing with auto insurance companies, the entire process can have an adverse effect on your emotional well-being.

Beyond that, your financial status can also be impacted if you don’t have the necessary protection or you don’t follow some basic rules after the accident occurs.

The following four tips will help protect your finances after you’ve been involved in an auto accident.

4 Ways to Keep an Auto Accident from Destroying Your Finances

  1. Choose the Right Policy

    Prospective insurance policyholders almost always have a hard time choosing the right policy. You must choose an auto insurance policy that offers enough financial protection for you and your family.

    Most states require at least $25,000 liability coverage for insurance policies. If you were involved in an auto accident where the other party sustained significant physical damage, you’ll potentially be liable for hundreds of thousands of dollars.

    Look for a policy that’s not expensive like Youi cheap car insurance.

    The best way to cover these additional costs is to purchase an umbrella policy or add excessive liability coverage to your current policy. This will help cover additional expenses should you be sued in court by the other party for liability reasons.

  2. Consider Car Replacement

    If your vehicle were to be totaled in a collision and you purchased only the minimum amount of insurance required by law, you’ll be stuck having to deal with a huge bill to replace your vehicle.

    This is especially true for financed vehicles. Even if the insurance gives you a payout for a total loss vehicle, the amount might not be enough to cover the money you still owe on the loan.

    Consider purchasing GAP insurance, a product commonly offered by car dealerships that will help pay for any additional money that’s owed to the bank if your car is deemed a total loss.

  3. Hire a Qualified Lawyer

    The trauma that everyone experiences after a car accident can have an adverse effect on their ability to make decisions. If you’re unsure about who’s at fault for the accident or about dealing with the insurance company yourself, consider hiring a lawyer.

    Auto accident attorneys can be especially effective when dealing with incidents that involve semi-trucks. The rules are often different for these types of accidents because they involve a commercial vehicle, and a lawyer can help navigate through the messy process of maximizing insurance payouts and dealing with any court proceedings, if necessary.

  4. Always Buy a Low Deductible

    Most car insurance companies offer policies with deductibles of $250, $500, $1000 and $2000. These deductibles are what you pay out-of-pocket before the insurance company will pay for the rest.

    Buying a policy with a low deductible means that you won’t have to pay a significant amount of money to the auto shop if you get in an accident. This is a great way to save money especially since your premium will likely still be within your budget.

When buying auto insurance, you should always prepare for the worse. Buy a significant amount of coverage and use a reputable insurance company.

Information Source: http://www.ladahlaw.com/las-vegas-truck-accident-lawyer/semi-truck

Author BIO

Anica Oaks is a Freelance writer and web enthusiast. Read some of her published work on her Google+ page.

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  1. 32 Responses to “4 Ways to Keep an Auto Accident from Destroying Your Finances”

  2. By bryan flake on Aug 17, 2015, 2:37 pm | Reply

    I am a disabled driver that is new to driving. It is really simple to understand what deductible means. Is there any reason why you might not buy a low deductible right off? The way the article reads, it sounds like a higher deductible might be better in some circumstances.

  3. By Audrey Blakeney on Sep 8, 2015, 1:43 pm | Reply

    Car accidents can be a sudden event that continues to wreck havoc in the future, especially to your insurance bills. However, the tip you shared about hiring a lawyer can actually be quite helpful. When the accident may not be your fault, or even when it is, an attorney could help reduce some of the resonating troubles and costs.

  4. By Correy Smith on Sep 18, 2015, 3:46 pm | Reply

    The third tip is actually what I had in mind doing. Mainly for my wife who recently got into a car accident and somehow was falsely accused. So far, she’s been able to find an auto accident attorney to fight off the false accusations.

  5. By Drew on Nov 4, 2015, 10:06 am | Reply

    It’s always a good idea to have an attorney fighting for you. They can help in many different areas and can definitely help with the insurance companies. Thanks so much for sharing!

  6. By Veronica Marks on Nov 13, 2015, 7:13 pm | Reply

    I didn’t realize that the minimum requirement for liability coverage might not cover the other person’s expenses if they are injured. I need to look at my current policy and see how much coverage we actually have. I know we went as cheap as possible, so I’m worried now that we just have the bare minimum. Thanks for this info!

  7. By Jenn on Nov 16, 2015, 3:51 pm | Reply

    I’m so glad we got a lawyer through our accident last week. I’ve been in two accidents before and just kind of let my insurance handle it all. But this time, since a commercial vehicle was at fault, we wanted to make sure we were protected during the restitution process, because they have a lawyer too.

  8. By jamesrod214 on Nov 16, 2015, 5:52 pm | Reply

    I like your tip about hiring a qualified lawyer. I was in a pretty bad car wreck a couple of years back. I had a really good lawyer who helped me get out of a bad situation, and he saved me money. It was nice to just have someone who understands the situation and has knowledge.

  9. By Aaron Kriegerson on Nov 30, 2015, 2:35 pm | Reply

    Thanks for your article about how to keep your finances in order after an accident. I was rear ended about a year ago. I took my car to a trusted auto body repair shop; and, they said that the repairs could be done, but would cost more than the car was worth. I trusted their advice. Sometimes it might be time to look for a new car after an accident to save money.

  10. By Jack Moore on Dec 2, 2015, 4:55 pm | Reply

    These are some really great tips! A lot of people think it’ll be smarter to take the higher deductible when they sign for an insurance policy, so their rate will be lower. But they usually regret that when they get in an accident and have to pay for the entire repair themselves. Another great tip is to make sure that you have a shop nearby that will do collision repair that you trust. Don’t just take your car to anyone, and if you can, make sure you have a good relationship with your mechanic.

  11. By Kael Drake on Dec 22, 2015, 6:19 pm | Reply

    I really liked your post! While I haven’t been in a car accident, I always think that it’s a good idea to prepare for the worst. I liked that you mentioned that if I were to get in a car accident, I should immediately hire a good lawyer. Like you mentioned, I think that with most accidents comes an inability to make decisions, and I think that a good personal injury lawyer would be very helpful to have! If I ever get in an accident, I’ll make sure to do as you suggest and hire a good lawyer as quickly as possible. Thank you for the advice!

  12. By alexbart999 on Jan 7, 2016, 1:29 am | Reply

    My partner and i didn’t be aware that the particular bare minimum requirement for responsibility coverage might not exactly protect another person’s bills when they usually are hurt. I must check out our existing coverage to see the amount of coverage we have. I’m sure we went because affordable as it can be, thus I’m worried seeing that we only contain the smallest amount. Cheers just for this facts!

  13. By Adam Bockler on Jan 7, 2016, 2:40 pm | Reply

    Another tips I might recommend is making sure that you have the police come and file an accident report after an incident. I was involved in an accident where I was rear ended and it totaled my car a little more than a year ago. The other driver was clearly at fault, but he tried to change the story when he spoke to his insurance company. With an official police report, it can help to make sure that the responsible party’s insurance will pay for collision repairs or other damages.

  14. By auto maintenance on Jan 18, 2016, 1:45 am | Reply

    Another tips I might recommend is making sure that you have the police come and file an accident report after an incident. I was involved in an accident where I was rear ended and it totaled my car a little more than a year ago. The other driver was clearly at fault, but he tried to change the story when he spoke to his insurance company.

  15. By Laurie on Feb 11, 2016, 4:58 pm | Reply

    It is important to see a doctor as soon as you can after a car accident even if you are only just a little sore. I also recommend consulting with an attorney, as they are good with dealing with the insurance companies. Thank you for sharing!

  16. By alex bart on Feb 22, 2016, 12:39 am | Reply

    Another tips I may suggest is ensuring that you have the police come and document a mischance report after an episode. I was included in a mishap where I was back finished and it totaled my auto somewhat more than a year prior. The other driver was obviously at shortcoming, yet he attempted to change the story when he addresses his insurance agency.

  17. By Laurel Larsen on Feb 22, 2016, 7:27 pm | Reply

    While car accidents can be traumatizing, it does not have to traumatizing for your finances. I like your advice to find the right insurance, and then within that insurance, choose the right deductible. The lower the deductible, the less money you have to pay for out-of-pocket in case of a serious accident. Auto body services would also be covered under good insurance plans.

  18. By Elden Gatley on Mar 1, 2016, 12:07 pm | Reply

    Thanks for the tip to hire a qualified attorney. I think that would help with repair costs. It would also probably be a good way to ensure you don’t get sewed when you don’t deserve it. I think there are so many issues that can result from car accidents.

  19. By stereo for cars Northern NJ on Mar 2, 2016, 9:19 am | Reply

    Doing several maintenance tasks can increase your fuel economy. Your tires should be checked every month. If they are not properly inflated, or have the wrong tire pressure, you can be losing fuel economy.

  20. By Carrick on Mar 23, 2016, 7:27 am | Reply

    I think that the most important way to reduce the cost of car insurance is to practice safe driving habits. Insurance costs are largely based on the risk of the driver, so if you are making sure that you are always attentive and obeying the laws as you suggest, you can be sure the be a low risk driver. If you already have a bad driving record, however, I think practicing these safe driving habits will help you in the first option of just waiting it out.

  21. By Westly Smith on Mar 23, 2016, 6:57 pm | Reply

    I agree with you that by hiring a qualified lawyer you can avoid a lot of problems. People might think that by hiring a lawyer, you would lose money, but that’s not the case. They can get you the most amount of money that you deserve. I know from experience!

  22. By Silas Knight on Mar 25, 2016, 3:30 pm | Reply

    My good friend had a pretty serious accident a few years back. He didn’t do a very good job with the things that you suggest here, and he is still recovering financially. He didn’t even hire a lawyer, and I think that could have saved him a lot of money. Great tips, thanks!

  23. By Jason Unrau on Mar 31, 2016, 11:46 pm | Reply

    Oh! I wish I read your post before my accident. At that time, I think I made mistakes so I myself destroy my finances: choose the wrong policy, not consider car replacement,not hire a qualified lawyer and not buy a low deductible.

  24. By Petunia Evans on Apr 12, 2016, 3:36 pm | Reply

    As much as I don’t want to get in any kind of car accident in the future, it’s almost inevitable for an accident to happen! I’ve never thought to hire a lawyer for a car accident. However, I see now how important it is to have one help you through something like this! Thanks for this advice!

  25. By Hazel Owens on May 17, 2016, 11:08 am | Reply

    I think that hiring a lawyer after an accident is the best option for a lot of people. Having someone be able to plead your case after an accident can help you earn more insurance payouts. I didn’t know that accidents involving semi-trucks were special when it comes to legal stuff; that’s a good thing to know. Thanks for the information!

  26. By Silas Knight on Jun 1, 2016, 3:42 pm | Reply

    Getting in a car collision can be pretty devastating. However, you have some great tips here for making it a little less devastating. Buying a low deductible is a great tip, that would be a big help after an accident. I need to remember that when I buy insurance.

  27. By linda Prin on Jul 5, 2016, 11:06 am | Reply

    I like knowing that by purchasing car insurance I can ensure that a collision wont break my financial position. I am getting a new car and just want to protect my asset, and my savings. I will be sure to look at low deductibles with my institution. Thanks for the advice.

  28. By Susan Curley on Aug 19, 2016, 7:16 am | Reply

    Hey

    We are all aware that mechanical equipment can malfunction and safety devices can fail, but when you are talking about trucks, those mouth functions and failures become a big deal very quickly because of the potential damage that can be caused in the aftermath. Just imagine the destruction from a gasoline truck today over, or a truck with cars on it.

    In this situation you have to be very specific about when explaining the situation to a truck accident lawyer is the environmental conditions that were present when the accident occurred.
    Susan Curley recently posted…Be Prepared and Know What to do after a Car AccidentMy Profile

  29. By Kate Stewart on Aug 26, 2016, 3:41 am | Reply

    These are some truly incredible tips! Many individuals think it’ll be more intelligent to take the higher deductible when they sign for a protection arrangement, so their rate will be lower. In any case, they more often than not lament that when they get in a mischance and need to pay for the whole repair themselves. Another incredible tip is to ensure that you have a shop close-by that will do impact repair that you trust. Don’t simply take your auto to anybody, and in the event that you can, ensure you have a decent association with your workman.

  30. By Faylinn on Sep 26, 2016, 1:16 pm | Reply

    I had no idea that buying a low deductible, like you mention, could help me financially when it comes to car accidents. Although I don’t plan on getting into a crash, I know that it could happen and want to be prepared when it comes to my insurance. However, it makes a ton of sense, and so now I’m going to look for a deductible that is under $500. However, do these policies also come with a maximum of what the insurance will pay for?

  31. By Joe Johnson on Oct 10, 2016, 8:29 am | Reply

    Make sure you don’t claim on insurance for dents and dings also! A lot of them can be sorted out with a hairdryer and a bucket of ice water and a YouTube video!
    Joe Johnson recently posted…Liverpool Car Body; Number One for Fast, Reliable Car Body Panels RepairMy Profile

  32. By Benson Bingham on Jan 17, 2017, 9:59 pm | Reply

    Benson & Bingham agree’s that having the policy maximum is the best bet when selecting auto insurance. Often times, the additional costs are typically not very much and the protection from uninsured or under insured drivers is invaluable. Often times at our Las Vegas firm we help individuals who experience a far greater loss or injury compared to what the negligent driver’s insurance will cover. Increasing your own limits is a great way to ensure you are covered in the event of these circumstance. If injured in an accident in Nevada, contact our law offices to discuss your rights: http://www.bensonbingham.com
    Benson Bingham recently posted…Rain Creates Havoc, Injury Crashes on Las Vegas RoadsMy Profile

  33. By Lillian Schaeffer on Feb 15, 2017, 10:18 am | Reply

    I like how you suggested buying car insurance with a low deductible to make accidents more affordable. I was recently in a car crash, and I need to take my vehicle to a repair shop, so I’m worried that the expenses will put a pretty big dent in my savings. Next time I’ll consider an insurance policy with a lower deductible so a situation like this is more affordable.

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