Cash Crash: How To Recover After An Accident

Recovering after a car crash can be traumatic, and it takes an effort to recover physically and financially from this type of event. Consider these tips to recover successfully from a car accident, and get your personal finances back on track.

As the population increases, accidents are getting more common. Millions of them happen every year, and they cause more than simply damage to the car. Crashes lead to injuries, and they force people to take time off work. As a result, your finances can take a huge hit, and the immediate future is in jeopardy. Sadly, it happens more than people realize and leaves families and homes damaged.

Recovering financially after an accident is as essential as recovering physically. Here are the basics:

Insurance Claims

The insurance premiums that you pay for coverage justify your decision to file a claim if your car is damaged, or if you have physical injuries. This is the whole reason to budget each month and pay for insurance premiums. Incidents that aren’t your fault deserve compensation. Otherwise, you’ll end up in financial trouble due to another person’s negligence.

Secondly, the money can secure your finances for a long time. Talk to EmrochandKilduff.com today and go over the basics. Speaking with an expert may ease your anxiety and encourage you to move forward.

Negotiations

The amount you receive in a legal settlement is critically important, because it must cover the cost of fixing or replacing your car, along with the health care expenses that must be paid so that you can recover physically. It’s a big decision, so get help from an expert.

The lawyers are the ones who cut deals and advise their clients, so don’t hold off on getting an accident lawyer. However, this doesn’t mean you can’t list a handful of your preferences. For instance, some settlements involve contributions towards healthcare. Considering the cost of treatment is likely to be high, it makes sense to include it in the negotiations.

Yes, the lump sum payment will be smaller but the overall deal will be tailored towards your lifestyle. Doctors are flexible according to cnbc.com yet there’s no point taking the risk. Give your needs and wants to an attorney and let them do the rest.

Managing Funds

As soon as the news come through that you’ve been awarded a legal settlement, you’ll start spending the money, but you shouldn’t fritter away the money away on a whim. Rather, invest it in a portfolio of diversified stocks and bonds, so that the investment earnings can help to cover your medical and other expenses. Spending is risky, but investopedia.com has a guide to help. Also, get help from a financial advisor on this issue.

What About Lenders?

The worst-case scenario is that your attorney can’t negotiate a reasonable settlement amount. Or, maybe there is but it won’t come into view for quite a while. Bills and arrears don’t go away because creditors want their money back ASAP.

The best thing to do is pick up the phone and call your creditors. Talking to them about paying a lesser amount now and setting up a payment plan often works. Why? It’s because they want to see a return on their investment (their loans to you), even if the payments arrive later than scheduled.

Ask people for help, create a plan, and you can recover physically and financially from a car accident.

This post is for educational purposes only.

 

Ken Boyd

Author: Cost Accounting for Dummies, Accounting All-In-One for Dummies, The CPA Exam for Dummies and 1,001 Accounting Questions for Dummies

Co-Founder: accountinged.com

(email) ken@stltest.net

(website and blog) https://www.accountingaccidentally.com/

(you tube channel) kenboydstl

 

Image: Bullseye, Jeff Turner CC by 2.0