Car Accidents Can Affect Your Credit Score
It is not uncommon for people to experience a worse credit score after an auto accident, and most people have no idea why it happens.
In this blog, we are going to explore how car accidents can affect your credit score.
Table of contents:
- A lower credit score due to a car accident
- Is it possible for an accident to hurt your credit score?
- How does a car accident damage my credit score?
- Ways you can prevent a credit score drop from happening
- Get chiropractic treatment at Arrowhead Clinic
A Lower Credit Score Due to a Car Accident
Being in a car accident is a traumatic experience.
It is definitely something that you never want to experience in your life.
Unfortunately, however,
You’re likely to experience some sort of crash at some point in your life.
Whether it be in the early days or the later days of life.
The last thing you want it to affect, however, is your credit score.
You may also be thinking, How Soon After a Car Accident Should I See a Chiropractor?
Is it Possible for an Accident to Hurt Your Credit Score?
Getting straight to the point: yes.
It is possible for a car accident to do a little damage to your credit score.
It is not uncommon for people to experience a worse credit score after an accident, and most people have no idea why it happens.
It is a hard thing to realize, especially after a traumatic event such as a car crash.
It's even harder if the crash wasn’t your fault!
With this in mind, there is probably a larger question on your mind.
And that is:
How Does a Car Accident Damage My Credit Score?
The largest culprit when it comes to damaged credit scores as a result of an accident...
Is health insurance.
Let me explain.
So, when you’re recovering from the accident, your insurance companies will start processing claims and expenses.
One of the ways that medical bills can become an issue is when they start coming in before the accident bills.
Your auto insurance is not going to cover the medical bills before the accident bills and, as a result, put them to the side.
Your medical insurance company is not going to sit around waiting for these bills, so your bills may be routed to a collection agency…
Damaging your credit score.
Another way medical bills can affect your credit score in an accident is if the insurance firms are reluctant to work with your health insurance broker.
Although this might sound a little off. It is not uncommon.
Sending bills through a health insurance broker can be a pain, and many insurance adjusters would rather send them to the auto insurance broker – resulting in delays, as mentioned above.
Ways You Can Prevent a Credit Score Drop From Happening
A car accident can be a traumatic experience, both physically and emotionally.
Amidst the chaos of dealing with injuries, vehicle repairs, and the insurance claim process, it’s easy to overlook the potential impact of the accident on your credit score. However, failing to address certain financial aspects of the aftermath could lead to a significant drop in your credit score.
Fortunately, there are steps you can take to mitigate this risk and prevent a credit score decline.
Notify Your Insurance Company Promptly
One of the first things you should do after a car accident is to notify your insurance company as soon as possible. Delaying the reporting of the accident could result in complications with your claim, which may ultimately lead to unpaid bills and collection notices. By promptly informing your insurer, you can initiate the claims process and ensure that any damages or medical expenses are addressed in a timely manner, minimizing the risk of financial repercussions that could negatively impact your credit.
Review Your Insurance Coverage
Take the time to review your insurance policy to understand what types of coverage you have and the limits of that coverage. In some cases, your insurance may not fully cover all of the expenses associated with the accident, such as medical bills or vehicle repairs exceeding your policy limits. In such situations, you may be responsible for paying the remaining costs out of pocket. Failing to do so could result in unpaid debts that could be reported to credit bureaus and lower your credit score. Consider whether additional coverage, such as uninsured/underinsured motorist coverage or medical payments coverage, may be beneficial in protecting your finances in the event of an accident.
Communicate with Creditors and Service Providers
If you anticipate having difficulty paying bills or meeting financial obligations due to the aftermath of the accident, don’t wait until you’re in default to address the situation. Contact your creditors, lenders, and service providers proactively to explain your circumstances and discuss possible alternatives, such as payment arrangements or temporary hardship programs. Many creditors are willing to work with consumers facing financial hardship to find viable solutions that prevent delinquencies and negative credit reporting.
Monitor Your Credit Report
Regularly monitoring your credit report is essential for identifying any inaccuracies or negative information that could be dragging down your credit score. Following a car accident, it’s especially important to keep a close eye on your credit report to ensure that any accounts related to the accident, such as medical bills or auto loans, are being reported accurately. If you spot any errors or discrepancies, dispute them with the credit bureaus to have them corrected promptly.
While a car accident can wreak havoc on your life in many ways, it doesn’t have to spell disaster for your credit score. By taking swift and proactive measures to address financial matters in the aftermath of an accident, you can protect your credit and minimize the risk of a credit score drop.
Get Chiropractic Treatment at Arrowhead Clinic
Car accidents and your credit score are (unfortunately) related.
It is important to make sure that having an accident won’t result in damage to your credit score.
Because it can happen if you’re not careful.
When you’re getting medical attention, always make sure the health insurance is used first and pay any deductibles before they become collectibles.
If you were involved in an auto accident, don't wait to seek medical care for your injuries.
At Arrowhead Clinic, we are experts at treating accident victims.
When you come to our clinic, you'll be assessed by one of our experienced chiropractors who will also provide you with a referral to an accident attorney who can help assist with all aspects of your accident claim.
Having an accident lawyer on your side will help significantly to make sure all of your medical costs are taken care of and that you are not left with a financial burden to deal with.
Accident victims should always consult with an experienced lawyer after being involved in an accident, especially if the accident was caused by someone else's careless actions.
The best way to obtain a fair accident settlement is to have a lawyer helping with your case.
Click the link below to schedule a free injury consultation with our expert Chiropractors today.
Next Blog: 5 Easy Steps You Can Take to Prevent an Auto Accident
