Want to recover your finances after an accident?
Accidents don't discriminate. They hit anyone, anytime. The difference is…
Most people suffer two financial recoveries after a car accident: one that they can control and one that they can't.
The good news?
You can control your financial recovery after an accident. You can even learn how to save money.
This article will show you how…
The thing is…
After an accident, most people immediately head for the most expensive route.
You'll pay thousands for an attorney if you want to get compensation, but how do you know if it's worth it? Do you really have to get an attorney? What can you do by yourself?
If you're starting to get panicked by the complexity and unknowns, you're not alone.
The fact is that financial recovery after an accident can be a lot easier than people make it out to be, but you need to know what you're doing.
Today, we'll share 9 expert strategies to help you save money.
Let's go.
Table of Contents
- Why is financial planning after an accident important?
- Smart strategies to reduce post-accident costs
- How to get the maximum recovery compensation
- Building your financial safety net
- Wrapping up your financial recovery strategy
Why is financial planning after an accident important?
Listen to something that is going to knock your socks off…
The average medical treatment costs following a car accident is $15,000.
Even if your accident is minor with only a few thousand in medical expenses.
Add in lost wages, property damage, and other unexpected expenses and your cost easily spiral into the thousands.
That's assuming you even have full insurance coverage for the accident.
Without a plan, you're suddenly dealing with financial devastation after an accident, even if the physical injuries aren't too bad.
What most people don't realize…
Accidents don't just happen to your body. It can hit your wallet from every angle.
Medical bills start to accumulate, insurance companies try to settle your claim for as little as possible, and you miss work and wages while you're recovering from your injuries.
And the worst part is that you will still be dealing with this debt even years after the accident if you don't have a proper financial plan for your recovery.
So, you need to have a plan in place for how to save money and recover from an accident. This doesn't matter if you've been hurt in a motorcycle crash, car accident, or slip and fall accident.
Getting professional help in the form of a motorcycle accident lawyer or personal injury lawyer can be the key to coming out of the accident in one piece financially.
Your financial safety net is important after an accident because it provides:
- An emergency fund for accident-related expenses
- Insurance coverage to pay for injuries and losses
- Legal assistance to get maximum compensation
The best part about having a strategy in place for your financial recovery…
You can actually come out of an accident ahead financially if you play your cards right.
Let me show you exactly how…
Smart strategies to reduce post-accident costs
In order to save money after an accident, it's important to know where to spend your energy.
Too many accident victims waste time and money on the wrong things while neglecting the real opportunities.
Here are the most effective post-accident saving strategies:
Track every single expense
This should go without saying but you'd be shocked at how many accident victims forget to track and document all their accident-related expenses.
Make sure to keep a record of:
- Medical bills and treatment expenses
- Prescription medications
- Lost wages and missed work days
- Transportation expenses for medical appointments
- Property damage and replacement costs
- Home modifications/replacements for accident recovery
This is important because you can potentially recover every dollar that can be attributed to the accident, from insurance companies or through legal action.
Negotiate medical bills directly
Here's a secret few people know…
You can actually negotiate your medical bills down to a fraction of the cost. Hospitals and medical providers would rather receive partial payment than no payment at all.
Before you pay any medical bill in full:
- Ask for an itemized statement
- Question any charges that seem excessive
- Request a payment plan with 0% interest
- Negotiate a settlement for a lower amount
This is one of the easiest ways to save thousands of dollars on your medical expenses after an accident.
Use your insurance coverage wisely
Did you know that 1 in 8 drivers are on the road without a single automobile insurance policy?
If that's the case, then you want to make sure you're using your insurance coverage to your advantage.
Do an annual insurance review to see what other coverages you have:
- Health insurance (with accident benefits)
- Automobile insurance medical payments coverage
- Disability insurance for lost wages
- Homeowner's/renter's insurance for personal property
- Credit card accident coverage
The truth is that most people pay for coverages they never use because they simply didn't know it existed. Don't be like them.
How to get the maximum recovery compensation
Maximizing your compensation after an accident isn't about luck. It's about strategy.
The number one mistake accident victims make is that they accept the first settlement offer from the insurance companies.
This is almost never the full amount of compensation you are entitled to. Insurance companies will always start with a lowball offer in order to save as much money as they can.
Don't rush into a settlement
Insurance companies want to close your case out as quickly and cheaply as possible. They will pressure you to take a settlement offer before you have a full grasp on the extent of your injuries.
Don't do this. Instead:
- Get a complete medical evaluation
- Calculate all your current and future expenses
- Take into account future earning capacity
- Factor in pain and suffering damages
Document everything like your life depends on it
Do you want to maximize your compensation? Start from day one of your accident.
You should be documenting:
- Photos of the accident scene and your injuries
- Witness contact information and statements
- Police reports and official documentation
- Medical records and treatment plans
- Employment records showing lost income
The more evidence you have to support your claim, the better your case will be.
Know when to call for backup
Sometimes you need help to get the compensation you deserve.
In cases of:
- Serious injuries with long-term impact
- Disputes over fault or liability
- Insurance companies refusing to pay out
- Complex legal issues
Get professional help. A good personal injury attorney can often recover many more thousands than you could on your own (even after attorney's fees).
Building your financial safety net
The best way to protect yourself from future accident-related financial issues? Build a solid financial safety net.
Emergency fund essentials
An emergency fund for unexpected events can be a lifesaver. It doesn't matter if you can only save a little bit each month.
Start with an amount that will cover:
- Insurance deductibles
- Initial medical and treatment costs
- Lost wages (2-4 weeks of income)
- Transportation
Review your insurance coverage
Most people are either over-insured or under-insured. Neither situation is good for your bank account.
Make sure to schedule an annual insurance review to ensure you have:
- Appropriate liability coverage limits
- Comprehensive medical coverage
- Uninsured/underinsured motorist coverage
- Disability income protection
Expensive insurance often ends up being a false economy if it's not the right insurance. Don't let this be you.
Create a post-accident action plan
A post-accident plan in place before you need it can save thousands and weeks of stress and worry.
This should be a written plan that includes:
- Emergency contact information
- Insurance policy numbers and contacts
- Preferred medical providers
- Legal resources and contacts
- Location of important documents
Wrapping up your financial recovery strategy
Financial recovery after an accident doesn't have to be a bank account destroyer. You can save money during your financial recovery after an accident, with the right strategies and a plan.
The key takeaways to remember are:
- Document everything from day one
- Negotiate your medical bills and expenses
- Take advantage of all available insurance coverage
- Don't rush into any settlement agreements
- Build a financial safety net for the future
