4 Expenses to Expect Following a Car Accident

Money can get tight after a car accident. You may not be aware of the costs associated with a car accident. Proper planning can help you prepare for anything that comes your way. If you are a driver, you should allocate money to an emergency fund in case you need it. Here are some costs you may have to deal with after an accident.

1. Uncovered Costs

If you have been following any money tips, then you know that it is an absolute must to have the right auto insurance to help save money. However, even with great coverage, some expenses may result from an auto accident that is not covered. If you settle for liability insurance alone, the expenses will be much higher.

You may have to deal with towing expenses. You may also need to cover replacement costs for your windshield. According to IBIS World, the United States has around 11,004 auto glass replacement and repair companies. If your deductible is high, paying out of pocket may be more cost-effective. Consider your deductible and how much money it will save you to pay out of pocket before you file a claim.

2. Lost Wages

If you are in an auto accident and that accident leaves you unable to work, you may be able to recoup your losses down the road, but what will you do in the meantime? According to UCLA Health, you can expect to wait about eight weeks for a bone to heal that was broken during the accident. Can you afford to be out of work for two months?

Again, you may be able to recoup lost wages through an insurance claim, but you may not be able to. If you can recoup lost wages, it will take about a year. Losing two months of wages can be financially devastating for anyone. Planning money matters to ensure that you have a cushion can help keep you and your family afloat after an auto accident.

3. Hidden Damage

After your vehicle is initially assessed, the insurance company will cover the cost of repairs. Of course, you will be responsible for the deductible. However, there may be hidden damage that does not appear during the assessment and might not appear sometime after the accident. For example, drivetrain damage may be minor after an accident and go unnoticed but may reveal itself after a few weeks of putting the vehicle back on the road.

While according to Your Mechanic, a driveshaft does not have a specific lifespan, it can be damaged in an auto accident; it is also recommended that the driveshaft is changed about every 75,000 miles (about 120700.8 km). You may not be able to trace this type of damage back to the accident to the insurance company’s satisfaction, and you may get stuck paying for the damage.

4. The Deductible

We briefly discussed the deductible cost, but it needs more attention. You will need to have the money to cover the deductible cost. At a minimum, if you are a driver, you should have the deductible money in the bank, ready to pay out if needed. Deductibles can range from a low of $250 to a high of about $1000. Many people choose a deductible somewhere in between to help keep the cost of their premiums down.

Deductibles are a fact of life regarding car accidents. You will have at the very least a deductible expense. You may also have towing costs, some repair costs, initial medical expenses, lost wages, and more. It is important that you plan your money to cover these unexpected expenses. Learn more ways to protect your money today.