Financial Planning After a Car Accident
Life after a car accident can be difficult on many levels. In addition to dealing with their injuries, many accident survivors are also faced with financial strain. Covering medical bills and losing wages are common problems for accident survivors. When someone else caused the accident that harmed you, you may even wonder how you will make ends meet until your case ends or you receive your settlement.
Fortunately, when learning how to live after a car accident, you can get your finances under control. With careful financial planning and self-reflection, you can get a clear perspective of where you stand and calculate how to stay afloat until you get your settlement.
Here at Silkman Law Firm Injury & Accident Lawyer, our Phoenix team knows the pain, frustration, and financial uncertainty you may face after a car accident caused by someone else. That is why we take a personalized approach to each case while providing aggressive representation. Contact us today for a free consultation and let us get to work on pursuing the money you need.
Understanding Your Financial Position Post-Accident
Car accidents can place enormous financial strain on a person. When waiting for your settlement, you may need to dip into your savings long before you thought you would. After an accident, you’ll need to examine your overall financial position.
To do this, start by being honest about how much money you have. Do not include credit because you will want to use credit sparingly. Find out exactly how much is in your checking and savings accounts and how long you must make that money last. List your recurring bills and living expenses to see where to cut costs.
The key to financial recovery after an accident is to develop an in-depth understanding of your financial health.
Navigating Insurance Claims
Insurance can be your saving grace after a car accident. The amount of financial assistance you obtain from insurance will depend on the at-fault party’s insurance policy limits, whether you purchased MedPay on your auto insurance policy, and whether you have access to healthcare insurance.
When someone else caused the accident that injured you, you can expect their insurance to pay for:
- Your medical bills, both present and future
- Lost wages
- Future lost earning capacity
- Car repairs or the value of your car before the accident
- Pain and suffering
- Loss of enjoyment of life
- Disfigurement
It’s best to engage a Phoenix car accident attorney soon after the accident so that they can begin collecting proof of all your accident-related losses. Your attorney can make sure that any settlement accounts for all aspects of your claim, not just the obvious ones.
Medical Expenses and Managing Costs
Medical bills can quickly add up after a car accident, especially if you have been severely injured. Not only do you have immediate hospital bills, you may need to pay for office visits, medication, physical therapy, and additional medical care in the future. You may even need to pay for counseling if you suffer mental trauma after an accident. Although your health insurance may cover much of your expenses in the short term, it may not cover everything.
Retain copies of your medical records to reference when you file a claim with the at-fault party’s insurance company. A successful claim will provide compensation for all your accident-related medical care.
Lost Wages and Compensation
If you were injured in a car accident, you may be unable to work. Even if you can work, you may miss days because of your injuries. Both of these things can reduce your income, and many accident survivors quickly notice that the cost of living after a car accident is rising steadily. Your settlement from the at-fault party’s insurance company should include your lost wages, but your settlement won’t arrive until the end of your case.
Your claim should include compensation for your lost wages. You could also get money for any paid time off you used to cover your off-work days, as well as any benefits, bonuses, or increases you missed out on because of your accident. By working closely with a car accident lawyer, you can better understand how much compensation for lost wages you may be eligible for.
Budgeting During Recovery
It is possible to keep your spending to a minimum after a car accident by using a budget. To create a monthly budget:
- Add up your income. List your salary, pension, and any other source of income, including your spouse’s. Remember to factor in taxes when you do this.
- Estimate monthly expenses. Track your monthly spending by studying your bank account and receipts. Classify each expense as essential or non-essential, fixed or non-fixed.
- Subtract your total expenses from your net pay and other sources of income. The amount you have left over will be yours to spend or save. Avoid spending more than you earn during this time.
- Track your expenses and stick to your budget. Some people use an envelope system for this purpose, putting the month’s allotted money in the envelope and writing purchases on the outside of the envelope until the money is spent. Others use online tools. Whatever works to help you track your spending is the best tool.
After a detailed look at your finances, see where you can cut corners or eliminate unnecessary expenses.
How Can a Lawyer Help?
An experienced car accident lawyer can help you file a claim with the insurer of the party responsible for your accident. They can also provide you with counsel and ensure your rights are respected during the claims process. After your accident, contact a car accident lawyer as soon as possible. You have limited time to file a lawsuit in Arizona, so you must act fast.
Contact Our Phoenix Car Accident Attorney for Assistance
If you were injured in a car accident caused by someone else, you should reach out to our Phoenix office immediately. We have extensive experience helping car accident victims recover compensation. Our legal team serves clients throughout the state. Contact Silkman Law Firm Injury & Accident Lawyer today to schedule a free consultation.