When most people think about the costs of a car accident, they immediately focus on the obvious expenses: repairing a damaged vehicle or paying an insurance deductible. It’s true that such costs can be significant, but they’re often only part of the financial hit.
The reality is that there are many hidden costs following a vehicle accident that many drivers are unaware of. Sometimes these expenses show up right away, but often they rear their ugly heads weeks, months, and sometimes even years after the accident occurred. Knowing and understanding the hidden costs can help soften the blow since you can prepare for them.
Here are five hidden expenses of a vehicle accident that most people don’t know about.
1. Lost Income and Reduced Productivity
One of the main hidden costs of a vehicle accident is lost income. Depending on the extent of the injury and the nature of your occupation, you might have to spend some time away from work for medical appointments, surgery, therapy, and recovery time.
For some people, the situation can involve missed days at work, lost overtime opportunities, missed bonuses and commissions, delayed projects, and missed business opportunities.
People who are self-employed or own businesses often face even greater challenges because their income depends directly on their labor and productivity. So, taking time off work to heal might mean forgoing a regular income.
Even in cases of minor injuries, there’s a lot of work involved in repairing vehicles, filing claims with insurers, visiting doctors, and doing other things.
The amount of money lost due to time off work can actually be more than the cost of car repairs — which can take many car owners by surprise. It’s worth hiring a motor vehicle accident lawyer if ever involved in an accident to explore the possibility of filing a claim for compensation.
2. Increased Insurance Premiums
After an accident, many people focus only on the cost of repairing their vehicles, so they don’t consider the increased insurance premiums they may have to pay in the future.
Depending on the circumstances of the accident, there’s a good chance you’ll have increased insurance policy premiums. Insurance companies consider factors like the following:
- Accident history
- History of claims
- Driving record
- Type of car
- Coverage level
Not all accidents lead to increased premiums, but many do. These increases will persist for several years, meaning the costs will keep rising even after your car is fixed.
If you want to estimate the real costs of the accident, you need to factor in the increased insurance expenses.
3. Transportation and Mobility Costs
A damaged car creates many problems if you absolutely need to drive and find it difficult, if not impossible, to find other dependable ways to get to and from. If left without the use of a car for any length of time, you might end up footing the bill for the following:
- Rental car
- Ride-sharing services
- Taxi fees
- Public transport
- Alternative transportation
These expenses will accumulate fast if your vehicle lingers in the repair shop for too long. The lack of mobility will definitely bring some expenses that you’ll have to be ready for.
4. Medical Expenses Other Than Initial Treatment
One reason to retain a vehicle accident attorney is to secure compensation for medical expenses such as doctor visits, physical therapy, prescription drugs, diagnostic tests, rehabilitation, and medical equipment. It goes without saying that the costs to get better can get out of hand.
And when they get out of hand, the last thing you want to do is pay out of pocket. Few people can afford such costs without financial assistance. A good lawyer can build a strong case to secure compensation. That can help you move forward and focus on getting better.
5. Value of the Car and Its Effect on Resale
One of the most often overlooked costs of the accident is the car itself. Even if the vehicle is repaired professionally, it’ll still suffer value depreciation compared to if it had never been in an accident. That can be a bitter pill to swallow, but it’s reality nonetheless.
So, if you sell the vehicle in the future, you’ll get less than would otherwise be the case — simply because of its accident history. Thinking about the resale implications after an accident will help you understand the full financial impact of a vehicle accident.
Getting into a car accident will cost you in more ways than one. The lost income, higher insurance premiums, transportation and mobility issues, ongoing medical expenses, and reduced car value are just some of the hidden costs of an accident.
Because most of these costs aren’t immediately apparent, people often underestimate their significance.
Having the proper insurance coverage, saving some money for emergencies, keeping track of your expenses, and getting medical attention right away can help reduce the impact of an accident.