Car Accident Loans

Car Accident Loans

Car accidents are a frequent occurrence in almost every country in the world, and Canada is no exception. Those accidents can cause all levels of damage to both vehicles and their drivers, as well as pedestrians, costing many lives and a lot of money in the process. The results can be devastating to the drivers and their families, emotionally, physically, and financially.

That is why many people involved in car accidents often need to take out a loan to help them cover the costs that follow, typically for mechanical and legal issues. Not just that, but since car accidents can cause other serious issues, physical and financial alike, many accident victims end up using their loans as a way to deal with their day-to-day financial needs, like housing costs, groceries, and other general living expenses.

The Consequences of a Car Accidents

While the number of deaths as a result of car accidents has been steadily dropping in Canada over the last few years, accidents themselves, whether they be average fender-benders or serious collisions, happen every day in every city, no matter how populated that city might be. Anything can happen on the road; a driver not paying attention because they’re texting, a person on a bicycle could be involved, a hit-and-run, and let’s not forget intoxicated drivers. Then again, it could be just that, an accident. Whatever the cause of the car accident might be, the consequences, especially the financial ones can be all over the chart.

For more information about how to avoid car loan debt, read this.

What happens if the case needs to be settled in court? Maybe Canada’s sporadic weather is the cause, where a driver hits a bad patch of ice and crashes. While a situation like this might not result in any legal action, their car could be out of commission and need thousands of dollars worth of repairs. Then there are vehicle-related injuries. A driver or any other person involved might be injured so badly that they can’t work. The financial results can be overwhelming and many people will need help to deal with them.

A Loan for Legal Costs

One of the most common incidents where someone might need a loan to help them out is during the legal process that follows some accidents. This will happen when someone wants to file a lawsuit against an inattentive or intoxicated driver, or maybe the driver/owner of a company vehicle like a delivery truck. They might even want to sue their city because of a negligent construction worker or a piece of city property, like a malfunctioning traffic light.

If they can’t cover the costs that come with court fees and hiring a lawyer, a car accident loan can help. Since a court case can drag out for months, even years, expenses will start to add up. The plaintiff might win their case and be able to pay everything back, with some money left over to finance the repairs on their vehicle or other costs. Then again, they could lose and then have to deal with the huge legal bill that follows. With a loan, they can pay what they owe in monthly installments, dealing with the costs at a reasonable rate instead of all at once.

Read this for more information on Lawsuit Loans.

A Loan for Damages or Repairs

Unfortunately, not everyone on the road can afford extensive car insurance. While all drivers legally must have insurance, their policy might not cover certain incidents. So, when an accident happens and your insurance doesn’t cover the repairs, things often need to get settled out of pocket. Let’s say the weather or something else inevitable was the cause, like a flat tire that in turn resulted in the car’s suspension needing to be repaired. Depending on the model of the car and the type of tire needed, a new tire alone can cost well over $200. Factor in the cost of parts, mechanical labor and taxes, and a simple flat tire caused by a bad pothole can lead to a significant bill.

Wondering if you should finance your car repairs with a loan? Read this.

Maybe the driver is the cause of damages to someone else’s car. If that driver doesn’t have insurance or the two drivers want to keep things civil and not bring the case to court, the person who caused the accident could then be responsible for paying for any repairs for both cars. Again, depending on the nature of the accident and where the repairs are being done, the mechanical costs can run into the thousands. Once the bill is settled, the driver who caused the accident might need a loan to get back on track with their own finances.

A Loan for a Physical or Mental Injury

As we said, car accidents come in a wide range of causes and damages. Unfortunately, so do the injuries that come as a result of them. Because of a bad accident, one or more occupants of the vehicle involved (or a pedestrian/cyclist struck by it) might have severe mental or physical injuries that result in them needing to take time off work to heal, or not being able to work at all. While disability insurance or possible court settlement winnings can help cover part of the costs of both the medical and living expenses that follow, they might not be enough for everything.

What if the person who was injured needs constant medical care, like a private nurse? Do they need medication? Or for a wheelchair ramp to be installed in their home? They might not be able to get back and forth from the grocery store and need to hire a delivery company to bring food to their family. What if they can’t even afford groceries because they can’t work? All these things considered, once again, a loan, even a small one can save the victim(s) a lot of financial troubles.

Why a Loan Can Help You After a Car Accident

Following a car accident, no matter how bad the accident was, any number of costs can be accumulated, including but of course not limited to necessary repairs, legal actions, and unemployment or medical expenses due to an injury. Any one of these reasons might lead to someone needing a loan to help them out financially. The debt that comes with any car accident can take a serious toll on someone’s financial stability and a loan can be an affordable way of dealing with that debt through monthly installments. So, drive safe, and if any accident does happen, speak to a financial advisor to find out what solution is best to deal with it.

Related posts