How an Auto Accident Can Wreck Your Personal Finances

Saturday, October 10, 2015, 6:00 AM | Leave Comment

Car accidents are expensive. Insurance only covers so much. Sometimes the other party will hold out in paying for your medical bills. Sometimes the insurance company will, too.

AAA estimates that auto accidents cost motorists almost $300 billion a year. Don’t let one auto accident ruin your financial future. Educate yourself about how crashes can impact your personal finances, and learn how you minimize that impact. Read on to learn more.

How an Auto Accident can Wreck your Personal Finances

  • Legal counsel can protect you from paying unnecessary costs

    Before you do anything, hire an attorney. Find an experienced lawyer who specializes in car accident cases. He or she should can determine what’s called the “crashworthiness” of your case.

    In other words, they access the evidence from your crash. Then, they decide whether you have a lawsuit against the other party involved or the car manufacturer.

  • Auto insurers won’t pay your medical bills

    The following scenario happens more frequently than we’d like. You get into an accident. You take an ambulance ride to the emergency room.

    You have a minor injury. You’re cleared to go. Your medical bill, now in the quadruple digits, goes to your insurance companies. Your health insurance pays part of your bill.

    Your auto insurance does not cover the rest. You may need to pay most of your bill out of pocket.

  • Your car insurance rate may go up

    Unfortunately, after an accident, your insurance premium will go up as much as 40%.

    You might lose any safe driver discount you already have. Some insurance companies will give you a break for a minor accident, especially if it was a single-person accident.

  • You may need to pay to get your car fixed

    Depending on how your accident unfolded, your car insurance might not cover the entirety of your repairs.

    This is especially true if your auto insurance plan didn’t include comprehensive collision coverage. You also may need to pay for a car rental out of pocket.

  • Your car payments won’t stop just because you got into an accident

    One of the most frustrating parts about accident costs are car payments. You’re paying for car repairs. You’re paying for medical expenses. You’re paying for car rentals. You’re paying higher car insurance rates. What are your car payments for the broken car in the shop? You have to keep paying those, too.

Before you spend another dime, contact an experienced attorney like someone from Cohen Placitella and Roth PC. to review the details of your accident. They may help to save you thousands of dollars in medical and car repair bills.

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