In 2021, fatal car accidents reached a 16-year high of 42,915. That’s a 10.5% increase from the 38,824 fatalities in 2020. Unfortunately, car accidents are part of living in a modern society. But their cost goes beyond just the tragic deaths they cause. In fact, there are many hidden costs to getting into a car accident that you may not be aware of.
In this article, we’ll go over what those hidden costs are and what you can do to prepare for and minimize them. Let’s get started!
1. Medical expenses
In all the car accidents that took place in 2021, there were 5.4 million medically consulted injuries that occurred. Such injuries lead to costs in terms of treatment, hospital visits, surgeries, medication, and other medical bills and copays. Even if your insurance covers most of these costs, they take a heavy toll on our healthcare system.
2. Lost income and earning capacity
According to the National Highway Traffic Safety Administration (NHTSA), about 2 million Americans are disabled by car crashes each year. Unfortunately, disabilities can permanently alter the course of your life. You may never be able to enjoy life the same way you once did and you may lose your ability to work or get a promotion. A disability can significantly limit your income, even if it is only temporary.
3. Car repair and property damage
Of course, a car accident usually causes damage to your vehicle. This could lead to costly repairs, or it may total the car entirely. Either way, you’ll be out a lot of money. You may also have to pay for a towing service to remove your vehicle from the accident scene.
4. Rental vehicle
After a car crash, your car will likely be out of commission. However, you probably still need to get places like your job, school, or family obligations. Consequently, you may need to rent a car or find some other form of transportation until your car gets fixed or replaced.
5. Long-term rehabilitation and care
Another potential cost of a car accident is the long-term rehabilitation and care you may be required to go through as a result of injuries. For example, you may need to undergo physical therapy or modify your house to accommodate a wheelchair. This can have a major impact on your finances and quality of life.
6. Auto insurance increases
If you cause a car accident, your car insurance premiums will likely go up. This is because you present more of a risk to auto insurance companies. If you cause one accident, you are more likely to cause another in the future.
7. Underwater auto loan payments
Whether your car is functional or not after the accident, you’ll still need to continue making your car payments. In fact, there’s a good chance your car will be worth less than the balance of the loan (an underwater loan), which means you’ll be stuck paying more than the car is worth.
8. Trauma and mental health
Though often overlooked, mental and emotional distress often follow car accidents. For example, you may experience post-traumatic stress disorder (PTSD), driving anxiety, or depression. These conditions may require professional counseling and therapy to manage. Unfortunately, they can cause lifelong mental pain and suffering as well.
9. Traffic ticket and court costs
Were you charged with speeding or breaking another traffic law after the accident? Then you may need to pay a hefty fine or appear in court to defend yourself. The same goes if the other car driver decides to sue or collect damages from you.
10. Missed opportunities
Lastly, getting into a car accident can lead to many missed opportunities—both in the short term and long term. For example, you may miss an important family event on the day of the accident or you may not be able to enjoy playing a sport for the rest of your life due to a disability that results from the accident.
How to prepare for the hidden costs of car accidents
To prepare for and minimize the hidden costs of a car accident, hire a reputable car accident attorney. They can help you navigate the complex legal system and help ensure you get the compensation you deserve.
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