Top 4 Ways An Accident Will Affect Your Finances
Our most valuable asset is our health in more ways than one. A single injury can set you and your savings back in a significant way. Without the proper legal assistance, you might not know what your financial options are. In the worst case, you can be left with a chronic injury and a never-ending pile of debt.
Sustaining an injury is obviously a problem for anyone. Being part of an automobile accident, for example, can also lead to problems like vehicle repair costs and psychological trauma.
One of the issues people overlook is the long-term and broader financial costs of an injury. To understand the gravity of the situation, we break down the four ways an injury will affect you financially.
Accidents and Injuries in Michigan
Defensive driving can’t always protect you from the reckless and negligent actions of other motorists on the road. As of February 2019, there were already more than 500 people seriously injured in roadway accidents this year.
When accidents happen, especially those leading to injury, it’s easy to panic and make hasty decisions. However, it’s essential to consider all of your legal and even medical options carefully. Your decisions will impact your present and future financial health as well. After making sure that you are in a stable medical condition, you can sort through your thoughts and prepare for the ways your injury can affect you financially.
Financial Impact of Sustaining an Injury
The ways an injury can impact your financial growth and opportunities can be categorized into four: medical expenses, lost wages, reduced earning ability, and pain and suffering. Understanding each one will help you prepare for an accident emotionally and financially.
- Medical Expenses
Right after you become involved in an accident, you will immediately incur medical costs. Direct and indirect medical expenses can be easy to bear if your injury is minor and you have no-fault insurance which includes first party benefits. For some cases, however, medical costs can easily overwhelm you.
The extent of the injury’s impact on your savings and financial health depends on several factors. First is severity. A less extreme injury, such as a minor fracture, can cost less, with only an X-ray imaging test, consultation, and bandaging. A more severe injury, such as those requiring open surgery, will necessarily lead to more expenses. Moderate to severe injuries usually require an ambulance ride, which can easily cost you hundreds of dollars. The treatment will be more extensive and prolonged.
- Lost wages
If you work from home, your problem when it comes to lost wages will be limited to how much bed rest you want to give yourself. However, many injuries require people to miss work due to the need for recovery time and additional treatment. People who have severe injuries might have to take medical leave for months. Under Michigan’s no-fault law, you can recover up to 85% of your lost wages for 3 years.
Right after an accident, you’re already sure to lose a day’s worth of wages thanks to the treatment at the hospital. Even if you’ve recovered enough after several days, you still might not be cleared by a doctor to work full time. You may be asked to take time off work for rehabilitation sessions or follow-up appointments.
- Reduced earning ability
Unfortunately, accidents can cause life-long or chronic injuries that can significantly diminish your capacity to work. Even if you recover, your injuries can impair your full functionality for months to years.
Recurrent back pain and broken wrists may lead to you taking a step back from strenuous jobs. Your new limitations can mean lower pay as well as fewer job opportunities.
- Pain and suffering
Pain and suffering are a legitimate part of an injury’s impact on your mental, emotional, and financial health. Whether you like it or not, sustaining an injury and all of its consequences will have an effect on your well-being.
If the other driver had not been negligent or reckless, you would have continued on the same path as you would have any other day. The pain and suffering you needlessly suffered is something that is factored into damages. You can receive due compensation for the inconveniences and anguish that you experienced under a third party claim.
Dealing with the Financial Impact of Injuries in Michigan
The damages you sustained in an accident shouldn’t be yours to bear alone. In any accident, the liable party can be sued to give compensation for the damages suffered. The compensation doesn’t just include the physical damage to your car. It should also include the damage to your financial growth and opportunities, including medical expenses, lost wages, reduced earning capacity, and pain and suffering.
You don’t need to suffer more through the web of legalese and uncertainty. With the representation and aid of The Clark Law Office personal injury attorneys, you will receive the best Michigan legal care possible. Contact us today for a free consultation!