Personal injuries can be very taxing on your physical health. The very nature of an injury means that it can cause you pain in some way, and it may even restrict your ability to do daily tasks. However, did you know that personal injuries can also be taxing on your financial health?
Personal injury lawsuits are some of the most common around, but do you know how financially damaging they can be to the victim? When people sue others for causing an injury, it’s not done out of spite or just because they can. No, it’s done because they are usually in a very tricky financial situation following the accident. The following guide will explain how and why a personal injury can damage your finances so severely.
What is a personal injury?
Before we begin looking at the financial side of things, let’s define a personal injury. We’re not referring to any injury you happen to suffer. No, a personal injury is a legal term for any injuries to your body, mind, or emotions. They are caused by other people or situations that were out of your control. For instance, you can suffer an injury through a car accident, slipping on a wet floor, using faulty equipment at work, and so on.
After understanding the above, we can now think about the ways in which your life will be financially impacted by a personal injury. Did you know that the average settlement amount for one of these cases is around $75,000? Why is it this high? Well, here’s how your life can be negatively impacted from an injury like this:
Naturally, you will have medical bills to deal with in this situation. The extent of these bills will vary depending on how severe your injury is. In some cases, you may need to pay for general hospital care to treat an injury. This could include the cost of an x-ray and any basic treatment you’re prescribed.
However, in other scenarios, you may need to pay for extensive surgery and spend many nights in hospital. Here, your medical expenses go through the roof and can be extremely damaging to your finances. The worst thing about all of this is that the medical bills are unplanned. You have been in an accident and got injured in an instant, so you have had no time to financially prepare yourself for this incident. Sure, if you’re financially savvy you might have an emergency fund. Still, this might not be enough to cover the medical bills alone, not forgetting all the rest.
Another way you can be financially impacted by a personal injury is through lost wages. Now, there are two different ways in which you can lose wages because you are injured. Firstly, you may need a lot of time off work. Yes, you might be granted sick pay, but what if you have already used up your allocated leave for this year? Or, what if you are off work for longer than your employer will pay you? In these cases, you will be off work without getting any money at all, and it’s all thanks to your injury.
Secondly, you might be left in a position where you have no work to do. If you are self-employed, you may be unable to do your job until the injury heals. As such, you could miss out on weeks and weeks of work, not to mention how many business relationships you could ruin. Similarly, you might be forced out of work for an extended period, whereby your company lets you go. They can’t afford to keep you on and you can’t do your job for a few months until you have healed. Again, you’re in a situation where you’re stuck at home without the ability to work and earn money.
In either of these scenarios, your finances take a heavy hit. You will not be generating a steady source of income until your injury heals. Even then, it can be hard for you to find work instantly if you haven’t been working for a while. This is why many people want compensation following an injury; to help cover their lost wages.
Think about the different situations in which you might get injured. Sometimes, you are in an accident that doesn’t just involve you, it involves your property – something that you own. The most common example of this is a car accident. You get struck by another vehicle, you injure yourself, but what happens to your car? It will also be damaged, and you will need to fix it.
Consequently, your personal injury just got more expensive as you have to deal with the damaged property alongside the damage to yourself! Depending on how bad the incident was – and what property was involved – these costs can be the most expensive of the lot.
The irony of this is that legal fees are only an issue when you go to seek compensation for the personal injury. If you don’t bother, you won’t incur any legal expenses. Unfortunately, you also won’t recover any money to compensate for all the financial issues mentioned above.
When you suffer from an injury, you need legal guidance to ensure you get the best settlement possible. A lawyer can help you calculate how much money you stand to lose as a result of the injury. This includes money lost right now, but also the money you could lose in the future – largely down to things like lost wages and ongoing medical costs. So, you really do need legal representation, but be aware that this adds to the financial tension of suffering from a personal injury.
Accidents can happen at any given time, but the consequences can be devastating. As you can see, there are many ways in which your finances will be damaged by suffering from a personal injury. If this has ever happened to you, it makes sense to take action and try to recover as much money as possible.
(Disclaimer: This content is a partnered post. This material is provided as news and general information. It should not be construed as an endorsement of any investment service. The opinions expressed are the personal views and experience of the author, and no recommendation is made.)