If you are unfortunate enough to be involved in an accident and to sustain a personal injury it is likely to have a detrimental effect on your financial position. The more serious the injury, the more likely it is that it will impact on your finances and result in you falling into debt. In this article we look at some of the ways that this can happen.
Loss of Earnings
If you are involved in an accident or have an injury, it is possible that you will miss time off work. It is also possible that this time off will be unpaid. In more serious accidents, you may be permanently disabled from working. Although you may be able to claim benefits, there is likely to be a delay in processing your claim and, even when your benefits are paid, they are likely to be well below the amount that you were earning in your employment and may not cover your pre-accident living expenses. The inevitable consequence of this impact on your income is a likelihood that you will fall into debt. This impact will be made even more severe if a family member also needs to take time from work to care for you.
Damage to Your Vehicle
If your injury was sustained in a motor vehicle accident it is likely that your own vehicle will have suffered damage. It may need to be written off. In the first scenario, the cost of repairs will eat into any savings that you have accumulated whilst, in the second, the vehicle may be written off for an amount that does not enable you to buy a comparative alternative. If you purchased the vehicle with the assistance of a loan, you may find that the write-off value is less than the amount outstanding, creating a ready-made debt. If you need a car for work and cannot afford to buy one, you may need to hire one. If this is for a lengthy period the rental payments will quickly mount up, resulting in a detrimental effect on your finances.
It may well be the case that you will incur medical expenses as a consequence of an injury. Some of these may not be covered by the NHS but you may still consider them to be a necessary part of your recovery. Private medical fees can be substantial and can have an immediate and lasting impact on your financial situation. You may also have to pay for the cost of your NHS prescriptions.
A motor accident can result in the loss of your no claims discount and an increase in future premiums, which can have an effect for several years. Once again, this will raise the level of your household expenditure and could result in debt.
In order to alleviate the impact of these financial consequences, if you are bringing a claim for compensation because the accident that caused your injury was caused through the fault of someone else, your personal injury lawyer may be able to negotiate an interim payment on your behalf. This can cover the immediate impact of the injury prior to the case reaching a conclusion.