Road traffic accidents can cost countries 3 percent of their GDP each year. For the United States of America, there are more than 10 million road accidents each year. A large percentage of those accidents result in injuries, fatalities and financial consequences, all of which can have both immediate and long term impacts on not only the victims, but their families as well. As families deal with the injury or loss of a loved one, they are also faced with the crippling financial impacts a road traffic accident can have on a household including a rise in their car insurance premiums, unexpected medical costs and beyond.
Spike in Insurance
If you choose to make a claim on your insurance after your accident, you will see your premiums rise. Depending on your policy, even a non fault claim can affect your premium and drive your insurance rates up. The premise of car insurance is to help you pay for any damages to others and their property that you may cause while driving. Because of this, the frequency and extent of any road collisions you may be involved in affects the insurance charge you pay. Riskier drivers (judged on the criteria set by insurance provider) are charged higher rates to compensate for the increased risk the company takes being their insurance provider.
Overhead costs
One of the sad consequences of road traffic accidents is injury to its victims, both physically and mentally. For the family, medical expenses that come with helping their loved one heal after the accident is another financial consequence. Increased expenses that may come with repairing or replacing your vehicle and also your aftercare (after release from medical attention) are some of the costs you and your family will face. To help with these, it is worthwhile to consider what compensation is applicable to your accident. For employers, it is the loss of valuable labor that is felt. Traffic crashes claim around 1.25 million lives each year, which is a loss of potential for their employers and country overall. Not only does it hinder the individual’s progression but it also slows down the economy.
Loss of Income
Lastly, most people involved in a road traffic accident miss out days at their work. Whether it is minor injuries or just needing a day to recover, some victims will lose out on income for the period they are off. For those affected with longer term injuries, not only do they lose their employment for the period but chances are, they will end up without a job. Particularly affected by this is the family as they contend with how to survive with loss of income and if possible, increased expenses.
The effects of road traffic accidents go well beyond the loss and damage of property or injury to the victims. Extending to their family and all aspects of their life, a traffic accident can truly change your entire lifestyle in a blink of an eye. However, with the right support and information, you can begin to put your life back together and move on after your accident.