The Economic Impact of a Car Accident
Last updated on July 19th, 2024 at 07:47 am
Involvement in an automobile accident can carry a substantial financial impact. Not only does it affect those who were in the immediate accident, but a car accident can also have an economic impact on the community. However, the financial implications of a car accident are not always immediately evident.
Common Costs of an Automobile Crash
Some of the financial ramifications that accompany a car accident are relatively obvious. Listed below are some of the costs that you can typically expect after a car accident:
Medical Expenses
Medical costs can pile up quickly following an automobile collision. They begin with the ambulance ride to the hospital and snowball from there. Medical expenses can be devastating, especially in the United States.
Some of the costs you may incur are as follows:
- Ambulance travel
- Emergency room visits
- Intensive Care Unit (ICU) stays
- Hospital stays
- Diagnostic tests
- Surgeries and procedures
- Doctor visits
- X-Rays
- Stitches, staples, and bandages
- Amputations and prosthetics
- The setting of broken bones
- Care for head injuries
- Mobility devices
Aside from the regular costs that gather following a car accident, other expenses related to physical injuries can create financial hardships. These expenses include therapy, home healthcare, follow-up visits, home alterations, medical equipment, and intensive rehabilitation programs.
Property Damage Can be Expensive
Replacing or repairing your vehicle after an accident can be a costly yet necessary expense. Depending on the state where the accident occurred, the type of insurance carried out, and who was at fault, fixing or buying a new car can be a tremendously expensive undertaking.
If you were transporting things in your car or truck when the accident happened, that property could also be damaged. This could be anything from a lawnmower to a surfboard, a laptop, or a mobile phone. Property damaged in the accident is damaging economically.
Another type of property damage that creates an expense is when things like fences, landscaping, or buildings are harmed due to the accident. The person whose property is damaged does not have to be a part of the wreck to be affected.
Lost Income
Another thing that impacts those involved in car accidents is missed work. Lost income happens when injuries occur, and car accident victims cannot immediately, or ever, return to work following the accident. Losing your income as bills mount can be financially devastating.
Job opportunities could be lost if your vehicle is damaged and you do not have transportation or if there is a deadline that you cannot meet because of your injuries. Depending on your injuries, transportation issues, and your job, you could lose significant money after a car accident.
Insurance Premiums Rise Following Automobile Accidents
Insurance companies are seeking profits. Risky drivers cost insurance companies money, and they hedge their bets when insuring drivers who have had traffic citations or car accidents by charging them more for coverage. If you have been in an accident, you can expect to pay more for your car insurance.
Impact on the Community
When an accident happens in an area, the perception of safety can be diminished. This can affect the businesses in the area and the property values there. Property can become damaged and can make the properties less desirable to buy or rent.
If multiple accidents occur in an area, the area’s reputation can be harmed. When this happens, property values can decrease because there is less demand for the area’s properties.
Car Accidents Cost Everyone Money
The financial harm done by an automobile accident can be more far-reaching than just repairing the vehicle. It can affect the driver’s finances for years to come, as well as harm the entire community.
