Unfortunately, car accidents do occur from time to time. Whether it is a small parking lot, congested town road or highway under construction, they can happen to anyone. If you are ever involved in an accident, it could make your financial situation very difficult to manage. Especially for people who are just making it, managing finances through an accident can be done using these tips.
If you are injured in a car accident, you might not be able to work, resulting in lost wages. During this time, you need to focus on other streams of income or cash flow. You can certainly take out a personal loan. Better yet, you can use a home equity line to save on the interest. Most importantly, you have to find another source of cash flow while you are off of work.
According to Noll Law (noll-law.com/personal-injury/car-accidents/ ):
“In Illinois, most drivers cover a small amount of “medical payments” or “medpay” coverage. This coverage is “no-fault,” and can often be claimed no matter who caused the collision. If an injured person’s health insurance company has high deductibles, oftentimes opening a medical payments claim is the best option.”
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If you live in a no-fault state or have Personal Injury Protection, your insurance company can help pay for your medical bills. It’s important that you send them all the documentation, including any hospital visits, results, lab work or procedures done. Even though it is a tough time, a proactive approach will increase the chances of negotiating medical bills and lowering the maximum payment. Following the instructions of your insurance company, you will be able to file and claim for medical bills.
Of course, your insurance premiums should be paid off. During this time, do not fall delinquent on your insurance policy. It can only help to keep your auto insurance policy in good standing when dealing with a car accident case. Moreover, they are representing you against the other party so you want to ensure they are paid.
Car Damage Repairs
Included in most car accidents, you may have quite a bit of damage to the vehicle. Depending on the other party’s insurance, the upfront repair costs might get covered. Otherwise, you will have to put the money upfront and get reimbursed later. While you could consider getting a loan for this, you should consider using a credit card that could be paid off quickly without paying too much interest after the current billing cycle.
Furthermore, you have to take care of yourself and the basics. Ensure that you budget enough to eat, rest and take care of things at home. Going through a traumatic experience requires time and peace of mind to heal. By taking care of the basic financial necessities, you will recover faster mentally, physically and financially.
If you are involved in an accident, prepare yourself for some financial challenges. To get through this tough time, plan to manage lost wages, medical bills and possible increased insurance rates. More so, you should get your car back on the road, pay for damage repairs and put the essentials first. With a solid plan in place, you are ready to manage your finances though a tough time.
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