People generally understand that car crashes can prove financially devastating. That is one of the reasons why liability insurance is mandatory. Drivers are required to have coverage that will pay for any damages they cause to others while at the wheel. Unfortunately, insurance has its limits.
Even when insurance coverage is appropriate given the scope of a collision’s consequences, people sometimes make mistakes when negotiating with an insurance company that put them at a financial disadvantage. For example, they agree to settle based on the immediate expenses after the crash and fail to consider long-term implications of the collision. The three costs below are some of the more commonly overlooked losses generated by major collisions.
Diminished vehicle value
Everyone understands that a crash will damage their vehicle and force them to either buy a new one or invest thousands in repairs and in rental vehicle costs until theirs is safe to drive again. What fewer people consider is how the record of the crash they experienced will influence what the vehicle is worth on the resale market. The more significant the damages, the more the wreck will diminish the final resale value of the vehicle. Especially for newer vehicles and prestige models, a collision could lead to thousands of dollars in diminished resale value.
Lost earning potential
People know that they can get compensation for lost wages when they are in the hospital for two weeks after a crash. Fewer people understand that insurance can also help cover the reduction in their income if they have to change professions because of their injuries. A blue-collar worker no longer able to do a job in a factory might have to move to a minimum-wage job as a cashier. The more severe someone’s injuries are and the more demanding their career is, the more likely they are to suffer reduced earning potential after a wreck.
Future medical expenses
Trauma care after a car crash can cost tens of thousands of dollars, but the medical bills don’t necessarily end once professionals stabilize someone’s condition. Those hurt in a car crash may require physical therapy in the future. If the party hurt is a child, they may require multiple treatments to achieve the same outcome as an adult because of their growing bodies. There could also be trauma or psychological consequences that end up costing thousands in the future.
It can be very difficult for those struggling with the immediate aftermath of a recent collision to earnestly review the future financial implications of that collision. Waiting to settle an insurance claim or to file a personal injury lawsuit until after a legal professional has thoroughly evaluated the financial consequences of a crash may help put someone in a better position to secure an appropriate amount of compensation.