4 Direct and Indirect Costs of Car Accidents
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A car accident is an unfortunate event that can leave everyone involved with massive financial burdens. Besides the physical and psychological trauma, the monetary costs can cause additional stress and concern. Medical bills, physical therapy, property damage, and legal fees are only a few examples of costs to consider.
Everyone is terrified by the idea of suffering severe injuries, hurting innocent traffic participants, and seeing their car destroyed in an accident. Yet, road accidents still happen regularly due to negligence, poor grasp of traffic laws, or speeding.
Read on to discover the direct and indirect costs of car accidents.
Major Direct Costs
The direct costs of a car accident can be massive and have catastrophic consequences in a person’s life.
1. Vehicle Damage
A car accident will cause damage to the vehicle or vehicles involved. The car repair costs can range widely depending on the severity of the accident.
However, you can reduce the repair costs by getting your car repaired by a local mechanic. Let’s say that you have a Honda car, you can find a local mechanic who deals with Honda cars specifically and you can also buy the damaged honda parts online, which would be cheaper than the traditional stores.
Statistics suggest that the number of cars totaled each year on roads all across the country is staggering. In most states, a car is considered totaled when the repair costs exceed the actual value of the vehicle. As a car owner and perhaps automotive enthusiast, it can be troubling to think about the risk of losing your car.
2. Medical Costs
Unfortunately, a large number of car accidents result in severe injuries. If you get injured in a car accident, you may need extensive medical treatment.
The costs of medical assistance, in-patient hospitalization, rehabilitation, physical therapy, and prescriptions can add up quickly.
The total healthcare costs can be in the range of tens of thousands of dollars. Ideally, the insurance provider should cover the medical expenses.
In reality, insurance companies do not always offer a fair payout. And considering that an injury can have long-term implications, getting fair compensation that covers all current and future medical expenses is vital.
If you’ve been injured in a car accident, contact a reputable auto accident lawyer to learn what constitutes fair compensation in your case. Without legal representation, you may not get what you rightfully deserve.
Major Indirect Costs
The indirect costs of a car accident can also be devastating.
1. Lost Earning Potential
A person injured in a car accident may not be able to return to work for several days, weeks, or months.
Many people experience temporary or permanent disability after being involved in a car accident, which stops them from pursuing their professional and financial goals. Thus, one of the indirect costs of car accidents is lost earning potential.
This general loss can manifest more specifically as loss of salary, missed job opportunities and meetings, lost clients or customers, and loss of productivity.
2. Legal Fees
Another indirect cost is legal fees. If you cause a car accident due to traffic law violations, your insurance will not cover the cost of criminal defense. If you suffer an injury due to someone else’s fault, you also need to pay for a lawyer to protect your rights.
A moment of negligence can have life-altering consequences. So, knowing the extensive costs of car accidents should encourage you to be more careful in traffic. Always choose cars with enhanced safety features.