Step 1: Get clear on what you’re paying for
In the first 24–72 hours after an accident, costs can be scattered. Make a simple list and separate “must-pay-now” items from expenses that can wait.
- Immediate: tow/impound, temporary transportation, prescriptions, urgent repairs
- Soon: insurance deductible, body shop estimate, rental car, missed-work shortfall
- Later: follow-up care, replacement devices, longer-term repairs
Use your emergency fund (if you have one)
Cash is usually the cheapest way to cover an unexpected bill because it avoids interest and fees. If you’ve built an emergency fund, consider using it for the true “right now” costs—then set a plan to rebuild it over time.
Ask for payment plans before you borrow
Many providers would rather set up a workable plan than send an account to collections. It can help to call and ask what options exist before a bill is due:
- Auto repair shops may offer staged repairs or split payments
- Hospitals and clinics often have payment plans or financial assistance programs
- Some towing/impound facilities may reduce fees if paid quickly
Borrow from family or friends (only with clear terms)
Borrowing from someone you know can be faster and less expensive than traditional credit, but it can also strain relationships if expectations are unclear. If you go this route, agree on a repayment schedule in writing so both sides feel protected.
Consider a personal loan for larger, one-time expenses
For a bigger gap—like a deductible plus repairs—an unsecured personal loan can help you cover costs upfront and repay over time with fixed monthly payments. Compare offers carefully and focus on total cost (APR + fees), not just the monthly payment.
Use short-term credit carefully
Credit cards can be useful for urgent expenses because they’re immediate, but the cost can rise quickly if you can’t pay the balance down. If you use a card, make a payoff plan right away—especially if the card has a high interest rate or cash-advance fees.
Quick checklist after a car crash
- Save every receipt (tow, rideshare, prescriptions, repairs)
- Request copies of reports and claim numbers for your records
- Ask your insurer what’s covered (rental, medical payments, roadside, etc.)
- Prioritize essentials first, then decide how to finance the remainder
Note: This article is for general informational purposes and is not financial advice.