Balancing Your Finances After A Motor Vehicle Accident

For many Alberta residents who’ve been involved in a motor vehicle accident, trying to balance their finances can be quite challenging afterwards, especially when they’ve sustained serious injuries. Whether you need medical treatment as a result of your injuries, or damages to your vehicle require some very costly repairs, or both, you could be feeling a financial crunch when trying to pay for these expenses.

These financial difficulties are often further compounded by the length of time it can take to resolve a personal injury claim, especially if a settlement cannot be reached outside the courtroom. The amount of court time that is currently available is extremely limited at best. Consequently, if you were to sustain injuries in a motor vehicle accident today, it could take 5 years or longer before your case goes in front of a judge and jury.

A Word about Accident Benefits

Although you’re entitled to accident benefits from your auto insurance company if you’ve been permanently disabled and can no longer work, your insurer will only pay you a maximum of $400 weekly or 80% or your total wage. This will not even begin to cover your mortgage or rent payment as well as any other monthly expenses you may have. In addition to this, you can only receive these accident benefits for a period of two years from the date that your accident occurred. In some cases, families cannot afford the daily necessities of life once those benefits run out.

What happens to Benefit Recipients under such Circumstances?

Some accident victims make the mistake of settling their personal injury claim too soon and take the first offer from the insurance company. Unfortunately, many don’t realize that they’ve been low-balled and were given far less than what they were entitled to. In some cases, individuals will take out a settlement loan with an excessively high interest rate that compounds daily. Once the loans (and the excessive interest rates) have been repaid, there’s very little of the original settlement left.

Fortunately, the Insurance Act enables personal injury victims to apply to the courts for an advance on the settlement they’re anticipating once their case goes to trial. In order to be successful when applying for such an advance, it is always recommended that the claimant enlist the services of an experienced personal injury lawyer in Camrose. Not only does this increase their chances of winning in court, it ensures that their rights to compensation in such matters are protected.