How To Save Money After A Car Accident

by Magical Penny on September 3, 2021

Being involved in a car accident is frightening, but the trauma is only just beginning. Aside from any physical injuries you might sustain, you have the worry of dealing with the financial costs of a car accident. Even if you weren’t at fault, a car accident can set you back thousands of dollars if you’re not careful. 

Consequently, you need to learn how to save money after a car accident. Now, there are a few things and tricks you can do to cut the financial expenses that occur in this difficult time. Here’s what you need to do:

Don’t make an insurance claim

Contrary to what you instinctively might do, making an insurance claim is a bad idea in this situation. Financially speaking, the long-term impact of making a claim isn’t worth it. For one, your premium might not even cover all of the costs. There’s a cap that it pays out at, not to mention your coverage might not include some of the things you’re claiming for. To make things worse, once you’ve made a claim, your car insurance premium will be hiked up. You’ve made your insurer payout, and they’re going to punish you by making you pay more. So, from here on in, your premium is more costly. 

Seek legal guidance

If you don’t make a claim, how can you get financial support after a car accident? Surely, you’re going to spend more money if you have to cover the costs yourself? Is it not worth sacrificing your low premium for compensation? 

If this were the only option, then yes, it would be worth it. As it happens, there’s an alternative; seek quality legal representation. The cost of hiring a lawyer will be outweighed by the amount of compensation you can get. They don’t have to deal with caps or anything like that; a lawyer can help you get more compensation than you deserve. Once you’ve paid them, you’ll have money left over to pay for any repairs or medical expenses. As a result, the total cost of your car accident will be minimal. 

You need to make sure you've covered with breakdown coverageShop around for the best repair services

Your car may well be damaged following the accident. In which case, you should shop around for the best repair services possible. Go to various repair shops and get quotes for the services. This will help you find a reliable provider that doesn’t cost an absolute fortune. 

As a result, you save money following your car accident. Naturally, the caveat is that you still need a trustworthy repair job. Don’t go for the cheapest option as it might not be the best. You’re looking for the sweet spot; still excellent service, but not at a premium price. 

Consider selling your car and getting a new one

The thought of buying a new car after an accident doesn’t fill you with ideas of saving money. However, this can help you save a fortune in the long run. You see, many people end up with a severely damaged car that needs a lot of repairs. They pay for them – which is expensive in its own right – but the car is never the same. The same repairs keep needing to be done more frequently, purely because the car has received too much trauma. 

A good comparison is if you badly damage a muscle in your body. You let it heal, but you carry on doing your normal tasks and you keep pulling the same muscle over and over again. It gets to the point where you experience a muscle tear, meaning surgery might be needed. It’s the same with your car; part of it gets so badly damaged that it can never truly be back to its original state. Eventually, you’re left with the conundrum of paying to replace the parts or carrying on paying for repairs. 

In many cases, the cost of repairs and replacement parts is so much that you can genuinely save money by selling the car. Even in its damaged state, you could get a bit of money for it, which can go towards your new car. Spending money on a new car will end up being cheaper than constantly paying for repairs on the old one. While it seems like you’re spending a lot of money, you’re actually saving plenty. 

Don’t let a car accident ruin you financially. Follow the tips above to learn how to save money when you’ve been involved in a car crash of some sort. It’s not impossible, and you will be eternally grateful for the savings. 

 

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