How to Recover Financially after an Accident That Wasn’t Your Fault

Recovering from an accident can be a painful process — not just physically and emotionally but financially too. Medical bills, lost wages, and property damage can add up quickly. If you can’t work because of your injuries, you may be stressed, which can exacerbate your pain and delay your recovery.

However, there are practical ways to help you recover financially after an accident.

Financial Assistance Programs

Expensive and long-term treatment can decimate any savings you might have, leaving you with no rainy-day fund and barely denting the amount you owe. But many families do not even have savings, so being unable to work after an accident can quickly cause bankruptcy.

Fortunately, you may be eligible for a financial assistance program. These exist to help those who need emergency financial aid. Services such as PhRMA, the HealthWell Foundation, and The National Association of Free & Charitable Clinics provide healthcare support, medical prescriptions, and out-of-pocket hospital expenses to low-income families who would otherwise be unable to afford care.

Other organizations exist to provide financial assistance for everything from food to utility bills.

Eligibility criteria apply, and there’s no guarantee you will receive financial aid. However, when you’re struggling to make ends meet, every little bit helps.

Create a Budget

Creating a budget is vital for recovering financially after an accident. By tracking your income and expenses, you can identify areas where you can cut back and save money. 

Begin by prioritizing non-negotiable expenses, such as rent or mortgage payments and utilities. Then, log your other costs and anticipated expenses. It’s worth exploring whether you can negotiate with service providers to reduce costs or spread your payments. For example, can you temporarily reduce your television package until your finances are more stable? You may need to give notice to downgrade, but as you’re not canceling your service, you will likely avoid an early termination fee.

Then, you can identify your unnecessary expenses and determine where you can compromise. You might not realize how much you spend on takeaways until you see the number in black and white! If you eat out once a week, perhaps you can reduce this to once a month or use your time at home to cook from scratch.

Personal Loans and Credit Cards

A low-cost loan or credit card can help you get through while money is tight. If you have multiple credit cards you’re paying interest on, it’s worth seeing if you can take advantage of 0% balance transfers to consolidate your debt onto a single card.

However, a loan or credit card should only be considered a last resort, and it’s crucial to understand the terms and conditions and where you’re at in your overall recovery. For example, if you’ve filed for compensation and successfully agreed to a settlement, you might consider a low-cost loan to see you through while you wait for the check. However, if you’re not sure if you have a claim, you need additional surgery for your injury, and your return-to-work date is uncertain, a loan could leave you worse off over the long term.

Before taking out a loan, talk to a financial advisor to ensure it’s right for you. The Consumer Financial Protection Bureau and United Way provide free financial advice via free guides, links to credit counselors, and the 211 helpline.

Seek Additional Work

If you can’t work your day job but can do other tasks, you may be able to make some money on the side. Legitimate work-from-home opportunities include completing online surveys, transcribing, and selling items for extra cash. It’s also worth speaking to your employer about working reduced hours remotely. For example, if you work in an office, are there any tasks you can complete from home?

There are a couple of caveats here. First, you should check your employment contract. Most organizations don’t have a problem with employees having side hustles, but some have clauses that prevent you from offering services to potential competitors (or clients’ competitors). You should also assess how working could impact your entitlement to compensation.

For example, if you claim your injuries leave you struggling to concentrate and in constant pain, but you spend several hours a day working on a computer and advertising services, it could derail your personal injury case.

Filing a Personal Injury Claim

A personal injury claim can be a vital financial lifeline after an accident. When your injuries were caused by someone else’s negligence, you’re entitled to recover the costs (or damages) that result. These include your medical bills, lost wages, loss of enjoyment, pain and suffering, and more. Personal injury claims cover a range of accidents, whether you were in a car accident caused by a drunk driver or you slipped on a wet floor because an employee didn’t put out a sign.

However, personal injury claims are complex and you need to meet a high burden. To win your case, you need ample evidence proving the severity of your injuries, your associated costs, and that the party you’re claiming against caused your accident.

A personal injury lawyer can tell you how much compensation you may be entitled to and gather evidence to prove your case. It’s beneficial to hire an attorney in the state where your accident happened. This ensures they are qualified to practice and gives you a local advantage. For example, if your accident occurred in the Rio Grande Valley in Texas, a personal injury lawyer in McAllen will be familiar with the local circuit and know the court staff and judges far better than an attorney in California with a Texas license.

If you’re worried about the cost of legal representation, many firms work on contingency, so you’ll only pay legal fees if they win your case. Your lawyer may also be able to issue a letter of protection to delay your medical bills until you receive compensation. 

Recovering financially after an accident can be difficult, but there are practical ways to alleviate the burden. Every situation is unique, but fortunately, support is available during this challenging time.