Some expenses are easy to quantify after a car crash. People have estimates from repair shops that show exactly how much it may cost to fix a damaged vehicle. They have hospital invoices that correlate to their medical care costs. They can even calculate temporary lost wages if they had to take several weeks away from their jobs for a broken bone to heal.
However, a car insurance settlement might represent the only compensation an injured party may receive. They are unlikely to secure additional compensation if they have future expenses after accepting the settlement.
People generally need to review settlements carefully to ensure that they are appropriate. There are several future expenses that people may need to factor into settlement negotiations after a collision. What future expenses can insurance cover?
Lost wages and earning potential
In scenarios where people sustain permanent injuries such as limb loss or spinal cord injuries, their career trajectory may forever change. They may not be able to perform the same well-paid tasks that they previously completed. They may have to move to a job that offers lower wages and fewer benefits. Even if a professional can stay in the same position and profession, missing work for injury recovery or regular medical appointments can affect their career advancement. Research has shown that employers are less likely to extend the best opportunities to those who miss a substantial amount of work, even when there is an obvious and reasonable explanation for their absences.
Future medical expenses
Many serious injuries create not just short-term medical care needs after a crash but also long-term medical requirements. Individuals with spinal cord injuries may require physical therapy on an ongoing basis to preserve muscle tone and maintain adequate circulation, for example. Many catastrophic injuries have an association with not just immediate traumatic care costs but also increased lifetime medical expenses. Costs can continue to accrue as people seek to limit their symptoms and adjust to functional limitations.
Increased long-term care costs
Many people eventually require medical support as they age. Individuals who have significant injuries can expect to require more support from caregivers. Injuries sustained early in life can have a major impact on functional abilities during retirement. Older adults may have significantly higher long-term care costs because of how their current medical conditions affect their support needs in the future.
Those trying to settle a large insurance claim after a major car wreck may need help quantifying these and other future losses. That way, they can ensure that the settlement represents a reasonable amount of compensation given the impact their injuries may have on their finances. Securing support while identifying future losses and estimating their impact can help people limit the long-term economic consequences of a car crash.