If you get injured in an accident, it can cost more than you think. Medical bills can reach astronomical amounts that run you into debt, but so can lost income and long-term physical limitations. While nobody expects to get hurt, it can happen at any time. Understanding what’s at stake can help you prepare for this potential.
Your Medical Bills Can Grow Fast
Medical care is usually an injured person’s biggest expense, but it doesn’t stop at emergency care. In addition to an ambulance ride and emergency room services, you’re also likely to get billed for imaging, bloodwork, specialist visits, and possibly even surgery. When you add follow-up care to the list, you’re looking at repeated appointments with doctors and specialists that might not be fully covered by your insurance. After that, you have to consider physical or occupational therapy that might extend for months.
Large medical bills are one of the reasons injured parties seek counsel from a lawyer to determine if they should file a lawsuit. In many cases, depending on the type of injury, a personal injury lawsuit is the only way to recover the proper amount of compensation. Insurance adjusters are trained to minimize payouts, and even when they’re willing to offer you the maximum, some cases are worth far more.
Lost Income Can Hit You Hard
On top of massive medical bills, if you’re unable to work because of your injury, you’ll get hit hard by reduced or non-existent paychecks. Missing just a week or two can reduce your income by several thousand dollars. Some people end up missing overtime, commissions, bonuses, and employer retirement contributions. If your injury causes permanent disability, you’ll have to adjust your career and possibly accept a job with lower pay.
Your Vehicle Might Have Hidden Damage
If you get injured in a car accident, it’s possible that your vehicle might have hidden damage that costs more to fix than you initially expect. There’s also a chance that your deductible is going to force you to pay hundreds or thousands of dollars up front. In the end, if your car needs major repairs, its value will be diminished if you choose to sell it in the future.
Regular Bills Don’t Stop When You Get Hurt
Once you’re injured in an accident, your regular bills will keep coming. You’ll still have to pay rent, buy groceries, pay your utility bills, and make loan payments. This can put you in a sticky situation where your debt becomes hard to manage when you have to put other bills first.
There’s also a chance that you’ll need help with tasks around the house, like cleaning, meal prep, and yard work. If you don’t have anyone to help you, you’ll need to hire it out, and that will cost money.
Insurance Doesn’t Always Cover Everything
Sometimes an insurance policy will cover major expenses, but they usually come with limits and deductibles. Even some of the best insurance policies won’t cover the full extent of losses. Sometimes you can fill in the gaps with multiple policies, but it might not be complete. Once you make a claim through your insurance policy, you can expect higher premiums in the future. And there’s always a chance the insurance company will dispute your claim and challenge your reported treatment costs or repair estimates.
Being In Recovery Changes Your Daily Life
If you’re hurt in a serious accident, you’ll likely spend a lot of time traveling to and from appointments, which will increase the amount of money you spend on fuel. If your mobility is affected, you might need rails, ramps, and other supportive equipment around the house. Some people need counseling after a serious injury to support their recovery, and others need in-home caregivers. All of these needs will increase your typical expenses.
Long-Term Losses Can Have A Devastating Impact On Your Finances
Some major injuries require multiple surgeries spaced out over time, long-term therapy and medication, and ongoing monitoring. One serious injury can derail your plans to pursue some investments, buy a home, go back to school, or anything else that requires money.
The Cost Of A Major Injury Is High
Getting injured in an accident can create a chain reaction of additional expenses. It might start with medical bills but can quickly include lost income, increased debt, depleted savings, and the need to take a lower paying job due to physical limitations.
Understanding these potential costs before an accident can help you create a substantial financial safety net. The more prepared you are now, the easier it will be to recover should you become injured in the future.
Photo by Diego González: Unsplash