People handling the aftermath of motor vehicle collisions often underestimate their losses. Many people assume that calculating the financial impact of a car crash is simple. They look at estimates from repair shops and medical invoices to add up their losses.
What they fail to consider is that the expenses may continue accumulating for many weeks after the crash, if not for the indefinite future. Particularly in cases where people sustain injuries, proceeding carefully when estimating losses and negotiating for compensation is of the utmost importance. People may need to consider future expenses in addition to any current bills they need to address.
What likely future losses can contribute to the total financial impact of a crash?
Diminished vehicle value
Some people cannot drive their vehicles safely after a crash occurs. Damage to the frame or to critical systems results in the insurance company declaring the vehicle a total loss. If a vehicle is repairable, people are often grateful for that.
Insurance can cover the cost of making the vehicle roadworthy again. People may have to consider how the record of the prior collision could affect the vehicle’s value in the future. The diminished resale value of the vehicle could affect what they can sell the vehicle for on the private market or how much they receive when they trade it in toward the purchase price of a different vehicle.
Future medical expenses
Many serious injuries generate ongoing medical expenses after a crash. People have to consider not just their recent expenses but their lifetime care costs. Brain injuries, spinal cord injuries and amputations can create many expenses that can recur throughout life. People have to replace prosthetic devices every few years, for example.
Serious injuries can also increase long-term care costs later in life, as people may require more support due to injury-related functional limitations. Estimating those losses can be a key component of securing adequate compensation.
Lost earning potential
Many people lose wages immediately after a crash occurs. They miss a certain number of days at work. Calculating that figure is relatively simple. However, if an injury produces lasting symptoms, people have to consider how their symptoms might affect their earning potential in the future.
They may not be able to stay in the same career until they retire. In some cases, they can continue their jobs but may no longer qualify for advancement opportunities. People need to estimate their lost future wages and the impact that their diminished career opportunities may have on their benefits as well.
Calculating the true long-term cost of a motor vehicle collision can be difficult. People often need help determining how much compensation to request and optimizing their financial recovery after a wreck, and that’s okay.