How to Ensure Financial Security After a Car Accident

When you have been in a car accident, you could be injured badly. You may be out of work for some time, or you may have to make expensive repairs to your car or perhaps the other party’s vehicle. All the items below will help you ensure that you are financially secure after the accident.

Insurance

You need car insurance to help repair your vehicle. Your car insurance will also help repair the car of the person you hit if you are at fault. You will have to pay for these repairs out of your own pocket when you do not have insurance. Chances are you will face major financial debt or even bankruptcy if you do not have insurance. You could also face a lawsuit especially if the accident is your fault.

Also, according to Anthony Clark Insurance Ltd., insurance will help you pay to replace your personal items. You can have an allowance through your car insurance that will pay for things that were damaged or lost in the accident. 

Civil Claims

You can make a claim in civil court if you feel that you were injured through no fault of your own. The civil claim could lead to a judgment or settlement that will pay you for your pain and suffering. If you have not explored this option, you could be leaving money on the table. However, beware of pursuing a lawsuit. If the other part feels that you were at fault of the accident, they can file a counter claim and attempt to sue you for their pain and suffering. They can also do this even if they are at fault for the accident as long as they have a credible claim that you were also negligent during the accident as well. 

Gap Insurance

There is another type of insurance that you need to have if you want to be financially stable after an accident. Gap insurance helps to pay for the difference between when you owe on a car and what the car is actually worth. You may owe $15,000 on a car, but your insurance may call the car a total loss at $13,000. The gap insurance will pay for the extra $2000 that you would have to keep paying for a car that you have lost in an accident.

Disability Insurance

Disability insurance will help pay your salary while you are out of work. You may never use your disability insurance, but you must pay the premiums to make sure that you are protected at all times. Most people get short term disability which lasts for 30 days, but they also need long term disability that will last up to six months. If you do not have disability coverage, you will lose all the salary you could make at work during the duration of your injury or disability. 

You also may have other expenses that will need to be covered as well. Medical bills are often very expensive and can be crippling financially without the help of disability insurance to take care of you and any loved one that may be involved. The last thing anyone wants while they are on disability is to have to worry about any financial problems or mishaps. Having the necessary insurance to help you out during this time will only lessen the burden and stress that has already been laid on your shoulders after suffering an accident.

When you are involved in an automobile accident, you need to make sure that you have covered all the items above. Each one helps you to remain financially stable even though you have lost your car, are injured and may be out of work.