The Hidden Costs of Car Accidents

A car accident disrupts daily life in an instant, and the financial impact often extends far beyond the bills that show up first. It’s normal to focus only on your immediate expenses, such as medical treatment, vehicle repairs, or time away from work. In reality, the full cost of a crash can continue to unfold for weeks, sometimes months.

Let’s take a look at some of the hidden financial and personal burdens that often surface after a car accident.

Rental Cars or Public Transportation Expenses

If your vehicle is in a repair shop or declared a total loss, transportation quickly becomes a major concern. Insurance may cover part of a rental vehicle, but coverage limits vary and often fall short of the full rental cost. Delays in repairs or parts availability can also extend the rental period far beyond expectations.

Those who rely on public transportation or rideshare services while waiting for their vehicle may face additional expenses and significant inconveniences. This is especially true in areas with limited public transit options. For many households, these added transportation costs are among the earliest and most frustrating burdens after a crash.

Lost Wages

A collision can interfere with your ability to work, whether due to injuries, medical appointments, or restrictions placed by a healthcare provider. Michigan no-fault benefits may reimburse lost wages, but these payments are limited and may not reflect the full financial strain of missed work.

Hourly workers, individuals in physically demanding roles, and people who are self-employed often feel the impact most sharply. For some, a temporary interruption in income leads to ongoing financial stress. The situation can become even more complicated when the accident causes medical conditions that require ongoing treatment, recurring therapy sessions, or an extended recovery period.

Towing

Towing is one of the first unexpected expenses to arise following a collision. Costs vary based on the towing distance, the type of vehicle involved, and whether specialized equipment is required. If your vehicle ends up in a storage yard, daily storage fees can accumulate quickly.

Your insurance policy may include some towing coverage. If no prompt action is taken to move the vehicle or coordinate with the insurer, these charges can grow into a substantial and surprising financial setback.

Property Damage

Vehicle damage is only part of what a collision can destroy. Items inside the vehicle, like phones, laptops, work equipment, and glasses, can also be lost or damaged.

Replacing these items is often an out-of-pocket cost. Some items are difficult to value, especially when receipts are unavailable or the damage is not documented immediately. For people transporting work tools, specialized equipment, or expensive hobby items, these losses can be considerable. 

Auto Insurance Deductibles

Most people expect insurance to cover any necessary vehicle repairs after an accident. Unfortunately, that’s not always the case, and it varies based on your insurance coverage. All Michigan drivers are required to have no-fault insurance, but no-fault insurance does not include collision coverage. There are two primary types of collision coverage: limited and standard. If you have limited collision coverage, you won’t have to pay the deductible if it’s determined that you are less than 50% at fault for the accident. However, if you have standard collision coverage, you are still required to pay the deductible, regardless of who is at fault. Deductibles vary, but the average deductible for collision coverage is $500, so expect to pay at least that much when submitting a claim for vehicle repairs.

Auto Insurance Premiums

Premium changes are another cost that may appear long after the dust settles from the accident. Depending on the circumstances, some policyholders see higher premiums at renewal, even when they did not cause the collision. Michigan’s insurance laws and underwriting rules vary by carrier, and premium adjustments can depend on factors such as driving record, claims history, and policy type.

These increases often catch people off guard, adding hundreds of dollars to transportation costs over time. While the immediate expenses of a crash are difficult enough, long-term premium changes can be among the most persistent financial effects of a car accident.

Quality of Life Decline & Mental Health Issues

The full impact of a collision is not always visible. Individuals may experience physical pain, limited mobility, sleep disruptions, stress, or fear related to driving. Emotional effects such as anxiety, irritability, trouble concentrating, or post-traumatic stress are also common.

Therapy, counseling, and other mental health support may be needed, but coverage for these services is not always straightforward. Mental health care often isn’t covered by insurance, creating additional financial strain. Even if a mental health clinic or provider accepts insurance, there are still co-pays and the plan’s deductible to consider.

Beyond treatment itself, quality-of-life changes, such as missing social activities, spending time away from family, or stepping away from hobbies, carry their own emotional weight that doesn’t have a monetary value.

Childcare & Household Assistance

Everyday responsibilities can become difficult after a crash, especially for those recovering from injuries. Parents may need temporary help with childcare, transportation to school or activities, or physically demanding tasks such as lifting young children.

Around the home, individuals may require support with cleaning, laundry, cooking, yard work, and grocery shopping. These services can be temporary or long-term, depending on the nature of the injuries. None of these tasks seems significant on its own, but collectively, they can create a meaningful financial and emotional burden.

Some individuals may also need home modifications such as grab bars, small mobility devices, or temporary ramps to help them navigate their living spaces safely.

Potential Traffic Tickets

If a traffic citation is issued at the scene, the driver could face fines, court costs, and possible points on their driving record. Points can influence insurance premiums for years, making the long-term financial impact of a single ticket significant.

While some citations can be challenged or mitigated, many people don’t realize they have options or assume that paying the fine is the simplest path. Understanding how these citations affect both finances and driving status can help individuals make informed decisions about their next steps.

Get the Support You Deserve from Giroux Pappas

The aftermath of a car accident reaches far beyond the initial collision.

When you need support, know that you can turn to Giroux Pappas Trial Attorneys. Our dedicated legal team will support you through each step of the recovery process, help you understand your rights under Michigan law, and ensure that hidden or overlooked costs are identified and addressed during your case review.

Contact us today to get started with a free consultation.