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How Suffering An Accident Can Impact Your Finances

Construction worker accident. Colleague with first aid pack

Accidents, unfortunately, happen – and when they do, they can have a profound impact on your life and wellbeing, beyond the extent of the injury itself.

Whether you suffer an injury at home, at work, on the road or in public, the consequences can stretch far. Here, we are concerned with the financial implications of such an injury. In what ways can an accident hamper your financial security?

Loss of Income

While not necessarily the largest cost burden of a given accident or injury, this is perhaps the most affecting on a personal level. Depending on the severity of the accident or incident, you may find your recovery period extending to months – or even longer if further corrective surgeries and treatments are necessary.

This length of recovery has a naturally devastating impact on your earning potential if you do not have an employment contract that states full pay will be given when off sick. Although being employed, you may be able to claim Statutory Sick Pay – but this will be a fraction of your wage, and only payable for 98 days. After the 98 days, you would only be able to rely on government benefits for recovery.

Medical Costs

While your earning potential plummets, other costs can rise in concert. Medical costs are not hugely common, as the majority of people will seek medical attention from the NHS. However, the severity of your injuries and the waiting list for certain surgical procedures may persuade you to β€˜go private’ in order to receive care quicker.

This is to say nothing of long-term provisions regarding your health. If you are rendered permanently disabled by your accident, you may need to install new accessibility features in and around your home – at serious personal cost, even with the various grants you may be able to apply for.

Material Damages

There is also the literal cost of damages caused through the accident in question to consider. If you were part of a road traffic collision, your car may require extensive repair work before it can function – or be written off completely. Either way, the costs involved can be crippling to your savings.

Professional Help

In managing the aftermath of your incident, you will be retaining the services of various professionals – each of whom come with their own costs. If you suffered an injury through no fault of your own, you might be seeking compensation via a civil claim; retaining a solicitor for this may cost you money before judgement, depending on the agreement made.

You might also have taken some of your mental health and physiological concerns private, through seeking assistance and guidance from licensed professionals to expedite your recovery. These costs are not insignificant, though they can be instrumental to recovery.

Barriers to Learning

Lastly, your rate of recovery or new accessibility requirements can change your path considerably. If your injury has neurological implications, you may find new and insurmountable barriers to further education – limiting your learning potential and costing you future earnings.

About author

Poppy loves personal finance almost as much as she loves her two cats, Tif and Taz.
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