The High Cost of Car Accidents: Protecting Your Future

Car accidents happen in a flash, but their impacts often linger far longer. Therefore, I am not surprised that you have been scrolling through Google to learn about the average cost of a car accident and the legal steps that you need to take!

The aftermath of a car accident in New York can disrupt your life, cause financial strain, and affect your future.

Car crashes can wreak havoc on your savings. Understanding the financial implications of the accident can help you to prepare for making informed decisions about insurance and legal action. 

Using data from a 2023 National Highway Traffic Safety Administration (NHTSA) report, The National Transportation Research Nonprofit (TRIP) has estimated fatal and severe traffic crashes in 2023 caused a total of $1.85 trillion in damages to American society, which includes $460 billion in economic costs and $1.4 trillion in quality-of-life costs. 

Car accident victims in New York have the right to pursue financial compensation for their injuries and other damages. 

An insurance payout in New York may cover your lost wages and current medical expenses, but you have no protection for future expenses arising from the accident. 

An experienced New York car accident lawyer can initiate and manage communication with your insurer, file your claim on time, and compile evidence, witness statements, and expert testimonies to help you seek fair and just compensation. 

According to the National Safety Council (NSC),  the estimated total cost of U.S. car crashes in 2022 was $340 billion. 

Your Car Insurance Goes Up After an Accident In New York

The state of New York is no-fault. Regardless of who caused the accident, your insurance will cover medical expenses and lost income up to the policy limits.

To calculate your premium rates, insurance firms look at your records from three to five years ago. You should anticipate a 40–50% increase in your insurance price following an accident.

The seriousness of the accident, your prior driving history, and the person at fault are some of the variables that affect an increase in your insurance premium.

Your insurance costs will likely rise significantly if you are at fault. Your premiums will skyrocket if you get into several accidents in a short period of time.

What is the Average Cost of Car Accident?

Car accidents can take a serious toll, not just emotionally but financially, too. On average, the cost of car accidents in the U.S. ranges from $9,000 to over $1 million, depending on the severity of the crash.

For minor fender benders, repair costs, medical bills, and insurance claims can easily add up to a few thousand dollars.

However, severe accidents can result in much higher expenses, including long-term medical care, lost wages, and legal fees. These are true, especially those involving injuries or fatalities.

One major factor is who’s at fault and whether insurance covers the damages. Even with good insurance, deductibles, increased premiums, and out-of-pocket costs can strain finances.

If you are facing injuries, medical treatments like hospital stays or physical therapy can quickly escalate costs. Property damage, such as fixing or replacing a car, adds another layer.

It’s essential to understand that these costs aren’t just personal—they also impact society. Studies show that car accidents cost the U.S. economy over $340 billion annually due to medical care, lost productivity, and legal processes.

The Cost of Car Accidents is High— Here’s Why!

Now that you are aware of the fact that the average cost of a car accident is quite high, you might be curious about the reason behind it. So, why is it like that?

Worry not! I have all the answers for you. Here are some fo the reasons that you must know about:

Mounting Medical Bills

Seeking prompt medical treatment can help you protect your injury claim. Medical treatment and its costs establish the link between your physical injuries and the accident. 

After an accident, immediate treatment costs, including emergency room( ER) visits, surgeries, and hospital stays, can be staggering.

Rehabilitation, physical therapy, follow-up appointments, prescription medications, and detection of delayed injuries can continue to affect your finances for months or even years. 

An experienced personal injury lawyer will wait until you’ve attained maximum medical improvement before determining the value of your claim. 

Lost Wages

If your accident injuries prevent you from returning to work, you may experience a significant loss of income. 

Lack of a steady income can make it difficult to cover basic living expenses, such as rent or mortgage payments, insurance premiums, utilities, gas, and groceries.

Car accident victims can seek damages for loss of future earning capacity in a New York personal injury lawsuit involving severe car accident injuries. 

Loss of earning capacity considers the future income the accident victim will lose after a settlement or lawsuit verdict. 

Loss of future earning capacity refers to the loss of income-generating ability a victim will experience in the future due to injuries. 

An experienced attorney will consider the following factors to value the loss of future earning capacity:

• The victim’s profession, age, life expectancy skills, education, licenses, certifications, and job location
• How long the injuries are likely to last and whether the victim can expect to return to their regular job 
• The victim’s overall health condition, career advancement opportunities, long-term employment goals, and whether income was fixed or performance-based. 

Car Repairs

New York law requires all drivers in the state to carry a minimum amount of liability coverage, but this does not mean your insurer will cover repairs. 

New York no-fault benefits do not cover property damage. The at-fault driver has to pay for any property damage.

If your car suffers damage due to someone else’s negligence and the repair costs exceed their policy limits, their insurance company will not pay more than the policy limit. In such a scenario, you can sue the at-fault driver for the exceeding amount. 

If the total repair costs exceed the value of your car, the insurance company may declare it a total loss. 

Contact A Car Accident Lawyer In New York

If you are a victim of a car collision in New York, there is no one you need by your side more than a car accident lawyer. 

Local New York auto accident lawyers are familiar with the roads and driving conditions in and around New York.

An experienced car accident lawyer in New York can explain your legal options and help recover the compensation you need. 

Call a local car accident lawyer today to schedule a free consultation. 

Read Also:

• How to Protect Your Kids from a Car Accident?
• What is the Role of an Expert Witness in a Car Accident Trial?
• Legal Considerations for Pedestrians and Cyclists Injured in California Car Accidents