How to Recover Financially After a Car Accident

Managing your finances can be tough at the best of times. A car accident is exactly the kind of setback you didn’t need! You likely have medical bills, the cost to have your car repaired or replaced, not to mention the time you could be losing from work due to injury. With everything you’ve lost and everything you need to recover, you may be wondering how on earth you’re going to manage it. Luckily, we’re here to help!

Tap Your Savings

The whole point of having a savings fund is to cover emergencies like making adjustments to your insurance policy. Unfortunately, an emergency savings fund isn’t going to do any good if you don’t already have one. If you do have one, this is the perfect time to use it. You’re going to need to cover a lot of expenses, and having some money saved up that you can lean on for a time can help make things less stressful.

If you don’t have an emergency savings fund but do have a retirement fund, you might technically have the option of dipping into that. Be prepared to face some pretty heavy taxes and penalties on the back of that, though, not to mention that the money you’re taking out can’t accrue you any interest until it’s put back in. You’ll be putting yourself in a worse position down the road, so we don’t recommend this option if it can be avoided.

Make the Most of Insurance

Insurance is often thought of as being a necessary evil. Of course, if you end up needing it, you’re going to be glad that you have it. The details of what it can do for you will depend heavily on your policy. Generally speaking, insurance helps you to:

1. Cover at least a portion of medical expenses. 

2. Pay for car repairs or the value of your car before it was totaled. 

3. Pay a portion of the cost of a rental vehicle. 

4. Cover lost wages. 

5. Pay for damage you may have caused to anyone else involved in the accident. 

While it’s a bit late to do anything about your policy after an accident, it’s a good idea to check that your policy’s coverage makes sense for you and your vehicles.

Retain a Lawyer

While your insurance policy can be a valuable asset when it comes to reducing some of the financial burden caused by the accident, it would be a mistake to think that the insurance company is on your side. While they may be upstanding and fair, they are in the business of insurance to make money, not hand it out. Aside from that, the details of an accident can sometimes be a bit difficult to tease out, making it harder to argue for a fair settlement. Especially in the event that involved parties were injured, it’s a good idea to retain the services of a personal accident attorney who specializes in car accidents. A car accident lawyer can fight for you to receive appropriate compensation for your injuries and losses, pain and suffering, emotional damage, and loss of experiences you suffer from the accident. Having an experienced car accident attorney on your side can make a real difference in how you come out on the other side of this situation in terms of your finances.

Crowdfund

Sometimes the actions of a few can restore your faith in humanity. If you’re really struggling, you can try crowdfunding to help cover some of your costs. Platforms like GoFundMe, GoGetFunding, Fundrazr, Fundly, and JustGiving can be helpful for individuals who want to try their hand at asking the public for some extra help to be sent their way. If you choose to crowdfund your expenses, make sure you understand the platform you’re using, how it works, what campaigns work best, and the terms and conditions of using it.

Car accidents can be incredibly stressful, especially as the numbers in your bank account drop lower and lower and your credit card balance rises higher and higher. Aim to make the most of your insurance, consider retaining the services of a car accident lawyer, tap into your emergency savings fund, or even give crowdfunding a shot. The good news is that there are many options out there to help you get back on your feet. Consider the options that make the most sense for your situation and get going on getting your life put back together.