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How a Car Wreck Can Negatively Impact Your Credit Score

Credit: Buzz60
Published on February 6, 2019 - Duration: 01:34s

How a Car Wreck Can Negatively Impact Your Credit Score

A car accident can add a few dings to your credit score if you don’t take care of business right away.

Buzz60's Sean Dowling has more.

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How a Car Wreck Can Negatively Impact Your Credit Score

Bad winter weather can make driving a nightmare.????Even if you’re lucky enough to walk away from a car accident with just a few scratches on your car, it can add a few dings to your credit score if you don’t take care of business right away.????So, don’t hit the brakes.????Take it from financial experts Credit.com, Experian and Zacks Investment Research spoke with.????Long story short, since car accidents aren’t reported to credit bureaus, they don’t directly impact your credit score, Credit.com says.????But if you rack up a ton of debt from the accident and don’t pay, then the debt can be sent to a collection agency and your credit score will take a hit.??Another thing that might happen; expect insurance premiums to go up.????That’s because your insurance company thinks you’re a high-risk.????And if your car was totaled and you need a new car, you could pay higher premiums.????The World Health Organization says nearly 20-50 million people suffer nonfatal injuries because of road accidents every year.????That means long hospital stays.????All of those medical bills could tank your credit.????If those bills head to collections, it could be too late to stop your credit scores from dropping dramatically as a result.

????If you have health and auto insurance, report the accident to your insurance company and get a claim number right away.????If you stall, an insurance company can try to use the fact that you were dragging your feet as grounds for denial of the claim.????Another pro tip is to save 20% of your paycheck for a rainy day.????Think six months’ worth of expenses so you’re in good shape if you get into an accident.????The shape of your car on the other hand, might need some love at the shop.

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