How to Manage Money Stress After a Car Accident

A car accident can throw your entire life into financial chaos, and depending on the severity of your injuries, the impact can last for decades. Between hospital bills, lost wages, personal expenses, and ongoing treatment, many car accident victims find themselves drowning in debt.

Studies show that most Americans don’t even have $1,000 saved for emergencies, which means a single car accident can cause years of financial stress. But it’s not impossible to manage. With smart planning and some legal help, here’s the best way to keep money stress from ruining your life.

Be prepared for ongoing expenses

The full financial toll of a car crash isn’t always obvious right away. Medical bills can come in at different times and it might be a week or two before you realize you can’t go back to your job. There’s also a possibility that your car insurance premium will increase, even if you weren’t at fault.

It’s crucial to be prepared for this so it doesn’t hit you as a surprise. When you’re grounded in knowing you’ll have ongoing bills to pay, that will guide the steps you take to cover your bills. For example, when you know you’re not going to be able to pay your bills out of pocket, you’ll have every reason to pursue a personal injury lawsuit.

Why a personal injury lawsuit is the answer

Next to getting medical care, talking to a lawyer right away is the single most important thing you can do to protect yourself after an accident. Serious injuries can rack up tens of thousands to hundreds of thousands in medical bills before you know it. And when you factor in missing work, even for just a few weeks, it can completely destabilize your finances.

Many people end up filing for bankruptcy after an accident because they can’t pay their medical bills. This sounds like a viable option, but it will ruin your credit for at least a decade and should be a last resort.

The better way to avoid this financial fallout is to pursue compensation through a lawsuit. When you hire a personal injury lawyer to take your case, they’ll fight hard to get you compensated for all of your medical bills, lost wages, and any other forms of compensation that apply to your situation. It’s the best way to pay your medical bills, cover ongoing care, handle your personal expenses, and avoid the negative consequences of filing for bankruptcy.

An experienced attorney will protect your financial future and ease your stress. When negotiating a settlement, they’ll account for long-term losses and reject unfair offers until they can get you what you deserve. And they won’t be afraid to take your case to trial if the insurance company won’t budge.

Track all of your expenses

Tracking expenses is a fundamental part of managing your finances. This applies equally when you’re facing medical expenses after an injury. If you don’t know what you owe, you can’t even begin to seek compensation that’s fair.

Keep copies of every bill, prescription, appointment, and any other expense you incur as a result of your injury. Track every missed day of work, keep all pay stubs, and get a letter from your employer confirming your lost wages. If you need to drive to appointments, document the mileage, even if it’s just a 20-minute trip. It will all add up. And be sure to include extra childcare costs and home modifications.

By carefully documenting your expenses, you’ll have a solid reference that will strengthen your case and help you recover fair compensation.

Lean on your insurance (but talk to a lawyer first)

Insurance coverage exists exactly for situations like this, but payouts and coverage are not usually straightforward. Start with your health insurance plan. Contact your provider and get clear on exactly what is being covered and what is not. Next, check your auto insurance coverage. You might have personal injury protection (PIP) or uninsured motorist coverage.

In any case, don’t confuse coverage with settlements. Be wary of any insurance company offering you a settlement because once you accept, you lose the right to negotiate for more money or file a lawsuit. Insurers want to close cases fast and will offer lowball settlement amounts to make that happen.

Regardless, don’t accept any money from any insurance company without talking to a lawyer first.

Don’t let money stress prevent your recovery

A car accident can leave you physically injured and emotionally strained, but it doesn’t have to keep you up at night. By tracking your expenses, leaning on your lawyer, and utilizing your insurance coverage, you can avoid being stressed out about money.