6 costs to plan for before your first car accident

No one wants to plan for the worst, but, unfortunately, no one is safe from the worst-case scenario, either. Getting into your first car accident is a big ordeal — not just for your nerves, but for your wallet, too.

Sure, you should do your best to avoid a collision at all costs; but it’s also essential to prepare for certain unexpected charges in the event one occurs.

Doctor Appointments

A majority of accidents require some level of doctor care. This is because the body sustained a trauma, even if you don’t feel it. After an accident, you should be prepared for X-rays, initial exams, and possible chiropractic care or physical therapy. Even though these medical visits might be minor, they can be costly.

Prepare yourself for the costs by making sure your car insurance and health insurance will cover you — minimum insurance coverage won’t do the trick. Instead, CNN recommends buying coverage for $100,000 per person or $300,000 per accident. Most insurance companies also offer coverage for no-fault accidents, but this is not necessary if you have good health insurance.

Car Repairs

Whether the accident is your fault or the other driver’s, be sure to get a lot of pictures. Good pictures can save you money, especially if you are at fault; you don’t want the other driver to blame past car damage on you. Another way you can save is by having enough property-damage liability coverage. Be aware that most cars cost around $25,000, so it is wise to have at least $30,000 in property damage coverage.

Don’t be afraid to shop around for the most affordable car repair prices, as well — you don’t want to settle with whoever your insurance company recommends.

Litigious Parties

The burdens of a car accident increase when a lawsuit has to be filed. The first thing you should do after an accident is to make sure everyone is okay. It’s smart to call 911 or the police department so that all injuries can be recorded. This can save you from false injury claims later on.

My grandmother hit a parked car with a man in the driver’s seat. He said he was fine and that there was no one else in the car. After they exchanged their information, my grandmother was then taken to court for injuries of several individuals of that driver’s family. It was his word against hers, and he was able to afford a good lawyer. If she had called the police to take a report, this costly situation could have been avoided.

Having more coverage will also cover lawsuit costs. Yes, your deductible will be higher, but you will save money in the long term.

Insurance Claims

Many times, drivers want to avoid the insurance company altogether to avoid raising their rates. However, if there’s damage to your vehicle or yourself, it’s best to get the insurance company involved. It’s also smart to have a police officer on scene to write a report. You should call the police immediately if the driver does not have his license or auto insurance available.

It’s best to call your insurance company right after an accident, so that your representative hears about the situation first from you. At the scene of the accident, make sure you document everything with good photos and the individual’s insurance, driver’s license and vehicle identification number.

DMV Auto Report

You are required to submit a DMV auto report within 10 days if the damage to your car costs over $750, if anyone was injured or if anyone was killed. This report can look bad on your car history when you are trying to sell the vehicle. It’s best to keep pictures of the accident and documentation of all repairs done. When you present the auto report, you can also show prospective buyers more details behind the accident. This thorough knowledge can help put many car buyers at ease.

Rental Cars

Your insurance company might be quick to send out a rental car, but be sure you are covered for one. If you are not covered for a rental car, then you might save money getting a rental car on your own. Search for deals online or, if possible, try to borrow a car or get a ride from a friend.