People don’t typically plan to get into car accidents, but they still happen, often at an alarming rate. Car accidents have a way of throwing multiple wrenches into people’s lives. Many of those wrenches have significant financial burdens that come along with them. They can be incredibly discouraging to deal with, so it’s a good idea to take steps to reduce the financial burden associated with them.
Take a Closer Look At Your Insurance
Do you know exactly what your car insurance covers? How much coverage do you have for medical expenses? What if the other driver doesn’t have insurance? Making sure you have enough insurance coverage can make a huge difference in the financial burden you’ll be facing after a car accident. It’s not uncommon to owe more than your car is worth while paying it off. In this case, having a gap insurance policy can keep you from still having to pay off a loan for a car you no longer have.
Have an Emergency Savings Fund
Even if you have really good insurance, you may still be left to foot the bill for expenses your insurance won’t cover. Emergency savings funds are meant to help you out when you experience emergencies, which a car accident can qualify as. The typical recommendation for emergency savings funds is to save up 3-6 months’ worth of expenses. The average bodily injury claim is about $15,000, but can easily be more, especially if you’re hospitalized. A healthy emergency savings fund may not be enough to cover all the expenses, but it can certainly make them easier to deal with.
Consider Retaining an Attorney
If you have good insurance, it’s likely to cover a lot of the costs associated with the accident. The hope is that any insurance company you deal with is upstanding and will pay out a fair settlement, but that isn’t always the case. If you aren’t sure you’re getting the help you should be, look for a car accident attorney to help you. Do some research so you know what to look for in an attorney. Car accident attorneys often offer free consultations and work on a contingency basis, so if they don’t win your case, you don’t pay them anything. They usually take a percentage of your settlement, leaving you with the rest to cover your financial obligations.
Car accidents are rarely a good thing, but there are things you can do to reduce the financial burden associated with them. Start by taking a closer look at your insurance and make sure you have the coverage you need. If you haven’t built up an emergency savings fund, start now to give yourself a cushion to work with. After the accident, carefully consider retaining an attorney. These actions will help you put yourself in the best position to deal with the financial aftermath of a car accident.
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