How to Protect Yourself Financially After a Serious Car Accident
The immediate moments following any car accident are overwhelming. When your vehicle is involved in a serious accident that totals your car, it can feel like your entire world has been flipped on its head. Not only do you need to worry about recovering physically and mentally from the accident but you also need to worry about how you’re going to protect yourself financially in the aftermath of the crash.
So how do you handle the bills, fines, and fees? Here are a few ways to keep yourself financially secure during this uncertain period.
Determine if it’s better to repair or replace
Truck accidents are some of the most dangerous types of vehicle accidents. Class 8 vehicles are heavy trucks weighing more than 26,000 pounds, and trucks like these traveling 65 miles per hour take up to two football fields to stop. Needless to say, if your vehicle was hit by a truck, there’s a good chance it’s totaled.
Even if your vehicle isn’t totaled, sometimes it’s more financially feasible to replace a vehicle than to repair it after a car accident. Get a quote from your auto repair shop and determine how much will be covered by your auto insurance. Compare the price you’ll pay out of pocket for the repairs to the price you’d pay for a new vehicle and make the most feasible option.
Consider contingency payments for medical bills
The three most common causes of car accidents on U.S. roads include distracted driving, drunk driving, and speeding. If you’re in the process of filing a personal injury claim against the driver who hit your vehicle, your attorney might be able to discuss contingency medical payments with your doctor.
Contingency medical payments mean your medical bills will be delayed until you reach a settlement with the at-fault driver and their insurance company. If contingency medical payments are possible, your attorney will include these payments in your settlement.
Be wary of personal loans
You may be tempted to take out a personal loan to pay for medical bills or car repairs after a serious accident. It’s important to note if you head in this direction that you need to pay close attention to the details of your loan. Some personal loans come with high-interest rates that can end up hurting you more in the long-run. That said, before you take out a loan, make sure you:
- Define how you plan to use the loan
- Determine exactly how much you need to borrow
- Don’t borrow more than what’s absolutely necessary
- Calculate the monthly payments you can afford
- Check your credit score and reports
It can be tricky to keep yourself protected financially after a serious car accident. By taking an honest look at your financial situation and the options you have, you can help keep yourself secure.
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