While no one wishes for misfortunes, car accidents have serious consequences that extend into the future. Whether you are the cause of the crash or not, body injury and vehicle damage result in emotional and financial effects. Here are some of the financial implications that can severely affect your family finances.
Depending on your insurance plan, you might have to fork out money to repair your damaged car. In the event your insurance denies the claim, you may also have to pay for the repair of the third party’s vehicle. Some repair costs run into the thousands of dollars and might severely affect your family finances.
After an accident occurs, the parties involved are expected to agree on the value of the damage and exchange insurance information. However, most people are unable to agree on the extent of the damage and seek intervention from the police. If you are on the wrong, the police will hand you a traffic ticket that ends up increasing your future insurance premiums.
Higher Insurance Premiums
In the event you are guilty of causing an accident, your insurance service provider is supposed to assess the damage and pay off the third party. However, the company is likely to respond by adjusting your future insurance premiums. An increase in the monthly premium may add up to thousands of dollars in the long run thereby affecting your family finances.
When damage caused by a car accident cannot be resolved, the affected party might choose to seek justice through the legal system. In case you are the affected party, you should consider hiring personal injury experts such as the lawyers at Bellotti Law Group, P.C. Unfortunately, if you caused the accident and found guilty, you might have fork out the hefty fines.
Reduced Credit Scores
In case you are unable to pay the medical bills that follow an accident, you are likely to be reported to a collection agency. When the bills are forwarded to collection agencies, your credit scores may decline drastically. A poor credit rating means you cannot access credit thereby affecting your family finances.
The five costs are the most significant accident implications that might hurt your finances. However, it’s important to note that financial effects are not the only implications an accident can cause. Some accident victims are known to suffer irreparable emotional and psychological damage. Always remember to drive carefully and maintain a safe distance between your car and the vehicle ahead. Your safety is crucial for your physical health and managing your family finances.