Previous automobile crashes can do damage to more than just your vehicle. It can also cause serious damage to your credit scores, making it difficult for you to obtain any future loans. Whether you’ve let your medical bills go to collections while waiting for your insurance company to approve your claim or you’ve been the cause of property damage that is not covered by your policy, your credit history could take quite a hit.
If you’ve been involved in an accident with an uninsured motorist who fails to pay for the damage done to your vehicle, you could be faced with exorbitant expenses related to your accident. While you’ll have to pay for the damage done to your vehicle on your own, you may also experience a rise from your insurance premiums annually. An insurance company will see you as a risk, especially if you’re having to contend with medical and repair bills.
Delayed Bill Payment
A blemished past driving record may have DUIs and accidents, and you need to ensure that you stay on top of the bill payment process. Filing a claim after a vehicle accident can take time, patience and money. While things may get incorrectly coded or sent to the wrong insurance agency, you need to stay on top of your claim by making contact with the agent. This can help speed up the process of getting reimbursed and avoiding a mounting pile of bills. Unpaid debt can eventually lead to collection agencies and a bad credit rating if you don’t have enough money to cover the costs you’ve incurred. Once your expenses reach the point of collection, your credit report could take a hit and send your credit score tumbling downward.
Relay Detailed Information
You can speed up the process of your claim and deter future bad credit ratings by relaying detailed information about the incident, model of vehicle and policy number. It’s also imperative that you immediately report the accident to the police and your insurance company, making sure that you get a claim number. You should also set up a file that holds your pertinent information and bills related to your accident. You should make note of any emails and phone interaction related to the accident. It can be easy to assume that the insurance carrier has everything covered. However, applying for a loan down the road can turn up a pile of bills that have been left unpaid.
Ask for Assistance
A New York accident lawyer states that his practice “will help to ease the financial burden an accident has caused” because they know the ins and outs of the legal system that you might not be aware of. Any accident attorney can help speed up the process and keep your accident related expenses from falling into the wrong hands such as a collection company. After a number of years, you may have difficulty trying to sort the mess out on your own, and you may be responsible for a significant amount of debt that should have been taken care of in the first place.
Vehicle accidents from previous years can play havoc with your future credit history. Whether the debt was supposed to have been taken care of by your insurance provider or you were overwhelmed in keeping up with the correspondence, you’ll find enlisting the help of an accident provider to be beneficial in keeping your credit report incident-free. Don’t let a mistake that you made years ago impact your future for financial freedom.
Debbie Nguyen is a designer who has worked hard to restore her credit. Her research into mistakes that young people tend to make drew her to a New York accident lawyer who helps with uninsured driver cases.
Photo Credit: http://www.flickr.com/photos/akhir/6109503590/
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