Car accidents cause an incredible financial and medical toll. In the United States, traffic accidents cost nearly $900 million per year.
Roughly one-third of that figure is attributed to vehicle repair and medical costs. The other two-thirds include indirect costs. These are costs related to constant pain, diminished quality of life, and loss.
Thousands of car accidents occur each day across the country. Many people wonder what is the average cost of a car accident?
Read on for a comprehensive breakdown of car accident bills. Explore topics such as insurance after a car accident and other expenses you are likely to incur.
What Expenses Do You Incur After a Car Accident?
There are so many different expenses that can arise from an accident. The priority after a collision is physical and mental health.
There can be medical issues lurking under the surface. Everyone involved in the accident must receive a thorough medical evaluation.
You may have experienced significant injuries and require hospitalization. In some cases, those involved require physical therapy to regain full movement. Others may suffer back and neck injuries that result in chronic pain.
Therefore, serious injuries often result in substantial medical expenses. While health insurance may partially cover these costs, the victim is usually left with thousands in medical bills.
Of course, there are costs to repair the vehicles involved in the accident. Auto insurance may cover a large portion of these costs. However, many policyholders have deductibles and other potential fees to pay.
There may be legal expenses following a car accident. If the collision was another driver’s fault, many accidents end up in court. Fortunately, some firms like Sweet Lawyers only require payment if you win the case.
Lastly, there are other indirect costs associated with a car accident. In the event of fatalities, victims are burdened with the cost of a funeral and memorial service.
In other cases, victims can no longer work due to their injuries. This results in lost wages over an indefinite period of time.
What Is the Average Cost of a Car Accident?
Now that we have discussed the various expenses, it is time to roll up the average cost. The cost increases exponentially depending on the severity of the car accident.
The average cost of property damage for the vehicle is $4,600. The cost increases to $12,500 when a medical evaluation is required but no injury is determined. This scenario adds the cost of medical tests and ambulatory services.
When an injury is diagnosed, the average cost increase to nearly $30,000. More serious injuries result in greater costs. When a person is disabled from a car accident, costs increase to nearly $100,000.
The worst-case scenario is when there is a loss of life. In these cases, the average costs exceed $1.7 million. This figure considers the lost wages over a lifetime.
A Recap of Car Accident Costs
Car accidents cost a significant amount of money. For an accurate representation, you need to consider the indirect costs such as loss of wages. There is also diminished quality of life and extended medical expenses.
If you enjoyed this article about the average cost of a car accident, check out our blog for more great content.