Data from the Bureau of Transportation Statistics affirm that around 13 motor vehicle accidents happen every minute. In the year 2020 alone, these accidents cost the economy around $474 billion, according to the National Safety Council. 

The economic toll mainly comes from the cost of treatments and losses of productivity for those disabled or killed by injuries. Managing finances is already tough at normal times, and a road accident is a setback no one would want. With everything you’ve lost during the collision and things to recover, it’s hard to take control and get back on track.

Make financial recovery a top priority with these practical tips. 

Get the Most Out of Your Insurance

Car insurance proves useful during unexpected times. It can be quite a burden to pay regularly. But if you do need it one day, you’ll be happy you have it. 

What your insurance can do for you depends on the policy. Generally, its coverage will include the following:

• A portion of medical expenses
• Car repairs or the value of the vehicle before it was damaged
• A part of the cost of the rental car (this is if you don’t own the vehicle)
• Lost wages
• Payment for damages caused to other parties involved in the  accident

After an accident, it’s already too late to change anything about your policy. Before getting insurance, check the policy coverage to see whether it makes sense for you and the vehicle. Getting insurance is crucial; you’ll feel its full value when you need it most.

Use Your Emergency Funds

This won’t do you good if you don’t have one ready. The point of saving some funds is to cover emergencies like vehicular accidents. If you have one already, this is the right time to use it. 

Having money saved can make things less stressful, especially since you must cover many expenses. If tapping into your emergency savings fund isn’t an option, you might have to dip into your retirement fund. But if you can avoid it, try not to take money from your retirement as you may face heavy penalties.

Lessen Your Expenses

Are you the one at fault for the accident? If you need to compensate for damages, the best thing you can do is reduce your expenses. This means you need to make a significant lifestyle change. Avoid buying (unnecessary) expensive stuff or going out on weekends to keep yourself from getting buried in debt. 

Another thing you can do is unsubscribe from services that are not essential. And if you wrecked your vehicle, you should hold off repairing it and take public transportation instead until you recover financially.

Negotiate the Loan Terms

Do you have an active car loan? Get in touch with your lenders and let them know your situation. Some lenders rather have small, consistent payments than missed payouts and are willing to negotiate the terms of your loan.

By negotiating loan terms, your credit score won’t suffer due to missed payments. This ensures that you will still have loan options in the future. 

Take a Side Job

If you can still handle it, take a side gig to help offset the costs of your accident. You can work many side jobs in your spare time to keep your finances from falling apart. 

The main point here is that: your accident isn’t the end of your world. Accidents can happen to anyone, and you can never be 100 percent prepared for it. Ride the storm by offsetting the costs and rebuilding your savings in the best way possible. 

Talk to a Lawyer

Sure, your insurance can help you reduce some of the financial burdens caused by a vehicular accident. However, it’s unrealistic to think the insurance company will be entirely on your side. While they try to be fair, they’re still running a business to make money, not give it out. 

Other than that, getting the details of an accident can make it more difficult to dispute a fair settlement. It’s significantly more challenging if both parties are injured. This is where it’s a good idea to hire a motor vehicle accident lawyer who can fight and help you receive fair indemnity for your injuries and losses.

Filing a personal injury claim

The most efficient way to recover finances is to file a personal injury claim through a lawyer. This is a legal dispute when one person suffers from harm, and another party might be legally responsible.

You can formalize a personal injury case through a lawyer who’ll legally represent you at a civil court proceeding. While you can proceed with a personal injury claim without the help of a lawyer, doing so lessens your advantage. A legal expert knows best how to navigate the law and ensure you get a reasonable court decision. 

Stay Prepared and Protected

Emergency funds will be your best financial buffer for unexpected situations like road accidents. But in cases where you’re the victim, having a motor vehicle accident lawyer support you can help get that compensation you deserve. Malpractice Center educates victims of accidents on their rights for compensation so they can recover their finances quickly.