The true financial impact of a car accident often runs far beyond the immediate damage to your car. Car accidents can result in a slew of financial damages, from insurance rate increases to mounting car accident medical bills and time taken off work. As California car accident lawyers, we’re all too familiar with the unseen financial risks our clients have to shoulder - some of which can go on for years - following an auto crash. 

Immediate Hidden Costs Following A Car Accident

Significant medical expenses and car repair/storage fees are the first thing to hit after you get into a car accident. Insurance may not cover the total cost of emergency room visits, ambulances, and diagnostic tests. All these healthcare related expenses (not to mention insurance copays, even when they don’t cover everything) can quickly mount up. If your car is significantly damaged, you’ll have to get it towed to a storage yard - which charges you a significant fee by the day. 

Long-Term Costs Of Car Accidents

1. Higher auto insurance premiums

 If you're principally at fault, filing a claim will almost always result in an insurance rate increase. California drivers can see their premiums go up by 20-40% from an accident, and the increased cost can last for three to five years, impacting your household budget significantly. Insurers in the state of California cannot raise your rates solely due to a not-at-fault accident, but it may make them raise an eyebrow and find other reasons to increase your premium.

2. Vehicle depreciation post-collision

Even if your car is fixed well and looks/works good as new, car dealers or buyers usually won’t pay as much for a car that’s been in an accident solely due to the crash history. If you’re planning on reselling your car (which most people are), that can be a difference of thousands of dollars.

3. Ongoing treatment 

Car accidents can often result in life-changing injuries that require long-term care. From physical therapy appointments and orthopedic specialist consultations to severe injuries that require significant treatment and rehabilitation, these costs are one of the biggest ways car accidents can impact you financially.

4. Lost wages and potentially reduced earning capacity

A car accident injury often means missing work while you recover. Significant injuries can mean you’re out of the game for weeks or even months, and if you sustain brain damage or work a manual labor job, you may never be able to reach the same earning capacity. Accident victims often don’t get compensated for time missed at work due to injury.

5. Emotional impact

Depression, anxiety, and PTSD are common with significant car accidents. Therapy and medication can be expensive, and insurance may not cover it - especially if symptoms take a while to show up.

Contact Us Today

Factors such as expensive auto repairs, higher medical costs, and strict insurance regulations significantly magnify the hidden costs of car accidents in California. Comparative negligence laws in the state can also affect the way you are compensated, and all the stress of juggling mounting bills while trying to get back to work and managing a household can just make your injuries worse. You’re also much more likely to make a mistake and cost yourself compensation you may have been entitled to. If you were injured in an auto accident, call the Law Office of Ball & Yorke in Ventura, California for a consultation and learn about your options.