People frequently underestimate how much a car crash may cost. They focus on short-term expenses and fail to look at the big picture. They are so eager to move on as quickly as possible that they may do themselves a real disservice.
People sometimes settle for less insurance compensation than they deserve or waive their right to take legal action after a major car crash. Those who know what they have lost are less likely to accept inappropriate compensation offers. How can those involved in a collision determine the true economic impact of that incident?
Consider property damage carefully
Damage to the vehicle and any other property inside of it can amount to tens of thousands of dollars. In cases where vehicles are no longer safe to drive, motorists may need to purchase replacement vehicles, which can come with a host of secondary expenses.
Even if it is possible to repair the vehicle, it may have a diminished resale value in the future. A vehicle with a major crash in its history may sell for less on the secondary market or be worth less as a trade-in at a dealership. People may need to factor in that diminished value when determining what the crash may cost them.
Explore the true cost of injuries
Current medical expenses aren’t a full accounting of what the crash may cost in the long run. People have to consider any future medical expenses they may have. Injuries that seem moderate now could drastically increase their support needs during their retirement years, for example.
They also need to consider the impact on their earning potential. Most people consider their lost wages when they have to take time off of work. What they may fail to factor in is the diminished earning potential they may have because of their injuries.
Some people have to move into jobs that pay them less. Others miss a lot of work and become less productive, which may limit their opportunities for advancement in the future. Their lost wages and benefits can potentially cost them tens of thousands of dollars annually until they reach retirement age.
There are also the emotional consequences of a car crash to consider. People may experience profound suffering. They may also develop mental health challenges because of what happened during or after a collision. It can be very difficult to value emotional suffering and long-term mental health consequences.
People trying to put a price tag on a major car wreck may need help with that process, and that’s okay. Creating an accurate estimate can help people more effectively recoup their losses after a crash.