The Financial Effects of a Car Accident

The Financial Effects of a Car Accident

A car accident can have far-reaching consequences on many different aspects of your life. Unfortunately, your wallet is often one of the things most affected by a wreck. From paying for damages to dealing with insurance spikes, you might be paying for the cost of an accident for years to come. It’s important to understand how these expenses work so that you can navigate them with as little issues as possible. Take care of yourself and your wallet with this guide to the financial effects of a car accident.

Vehicle and Property Damage

One of the most obvious expenses following a car crash is the cost of the damages. If you were at fault, your liability insurance should cover the cost of the other person’s vehicle repairs and other property damage. However, most liability insurance does not cover your own vehicle. You will have to pay for towing services, repairs, or potentially a rental car while your vehicle is in the shop. If you total your car in the accident, you might also have to pay for a new vehicle altogether. These costs can add up, especially in more serious accidents.

Medical Expenses and Lost Income

Medical bills pile up quickly, especially if the at-fault party doesn’t have adequate insurance to cover the expenses. Treatment, rehabilitation, and other aspects of medical care are among the most expensive financial effects of a car accident. Unfortunately, these aren’t the only costs that come with recovering from an accident. You might also have to deal with mobility aids, childcare services, alternative transportation, and lost income if you experience an accident that requires medical treatment.

Increased Insurance Premiums

A car accident often means an increase in your auto insurance rates—especially if you were at fault. The accident goes on your driving record, which means insurance providers will factor it into your policy for a certain number of years. If the accident is a result of driving under the influence or other reckless driving behavior, you might also need to pay for an SR22 insurance policy. Fortunately, there are ways to navigate your insurance policy and find the best rates for you and your situation. Visit Serenity Group today to compare quotes for the SR22 in California or anywhere else you need to purchase an auto insurance policy.