After having a serious injury in an auto accident, you could go bankrupt if your insurance policy doesn’t cover all or most of your medical bills. Hospital and healthcare costs are rising rapidly today.
But you shouldn’t have to pay thousands of dollars out of your own pocket for expenses caused by a bad driver.
If your goal is avoiding bankruptcy after an accident, it’s vital that you secure uninsured motorists coverage and underinsured motorists coverage for your own car insurance policy. That way, when another driver is at fault and causes your injury, and that driver either has no insurance or inadequate insurance, you can file a claim with your own insurer to cover your costs.
If you lack uninsured motorist insurance and underinsured motorists insurance, you could face thousands of dollars of costs for your post-accident healthcare — even though you weren’t at fault in the wreck. Such costs could cause bankruptcy, especially since a driver without insurance probably isn’t solvent enough to pay you if you sue him or her for damages.
That leaves you in the lurch — but not if you get uninsured and underinsured motorists coverage for your own auto policy. Check your policy or consult your insurer today to make sure you have this coverage — coverage which could enable you to avoid bankruptcy after a catastrophic auto accident.
Your insurer is required by law to offer you such coverage when you buy your policy. Your insurer must have a signed statement from you indicating you declined such coverage in order to avoid paying a claim. If your insurer lacks such a statement, even if you haven’t acquired uninsured motorist coverage yet, you can do so retroactively after a crash.
Another way to prepare for unexpected medical costs is to set up a Health Savings Account (HSA). These are tax-advantaged medical savings accounts to which you can contribute and from which you can withdraw funds for specific medical costs, tax-free.
An HSA may be utilized to pay your out-of-pocket expenses for medical, vision and dental care. However, your HSA account cannot be employed to pay your medical and health insurance premiums.
To set up an HSA, you need to be a taxpayer and be enrolled in an HDHP, or a high-deductible health plan. That means your insurance has low premiums but higher deductibles than a traditional insurance plan.
Don’t wait until you’ve had an accident to explore your financial options. And when you have had an injury accident, don’t hesitate to seek legal help in dealing with your expenses.
To do so, contact an experienced car accident lawyer with Jim Adler & Associates. Our law firm can help guide you toward the protections you need and deserve after another driver injured you or a loved one. We also can work to make sure your insurance company pays you the money to which you are legally entitled.
Jim Adler knows the high costs of medical care, and he wants to help you avoid bankruptcy after an accident. Check out his YouTube video here.
If you need more information, contact us today. We’ll be happy to provide you with a free legal review of your case, and at no obligation to you. With proper precautions, you may be able to avoid the huge post-accident expenses which can force some people into bankruptcy.