Photo of Edward P. Shaughnessy
Photo of Edward P. Shaughnessy

How a car accident can affect your finances

On Behalf of | May 4, 2023 | Car Accidents |

Being involved in a car accident due to another person’s negligence is devastating. It can affect your life in different ways, including your finances. You may find it challenging to maintain your living standard or support your loved ones as you did before.

This guide discusses how a car accident can affect your finances.

Lost wages 

When you are injured, you may miss work for some time, which means a loss of income. Further, when you return to work, you may be unable to perform your usual tasks. Thus, you may have to work for fewer hours, or your employer may move you to a less demanding department with less pay.

In addition to the loss/reduction of your current income, a car accident may interfere with your future earning capacity. An injury may make it impossible to go after your dreams. For instance, it may be hard to get promotions or make career changes as you may have wished.

Medical expenses

Another way an accident may affect your finances is medical expenses, from ambulance costs to treatment and medications. The medical costs you incur will depend on the severity of the injuries. You may have ongoing medical costs that can last for years, for example, in the case of spinal cord injury or permanent disability.

Vehicle repairs

You will need to repair your vehicle and costs may be high, especially if the damage is significant. Your insurance company may not take care of all repairs. Thus, you may need to get into your pocket to return your car to the road. However, if the accident was serious enough that the car can’t be repaired, you might need to replace it.

If you are involved in a car accident, it will be best to consider your options to get the compensation that can cover your economic damages.