Here’s how much unexpected emergencies can cost you

Picture this: you come home after a long day. As you approach the front door, you reach for your keys but don’t feel like they’re in your pocket.

You quickly realize that you are locked out. Fortunately, a locksmith on duty can help.

However, depending on your account, an emergency visit like this can cost up to $400 depending on your location and time of day, lock type, service and travel costs. this old house, a home improvement information and advice platform. (The national average, the platform found, is $150.)

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Unfortunately, SecureSave, a financial technology provider that helps employers offer emergency savings benefits, found that more than half, or 63%, of U.S. workers are unable to cover a $500 emergency expense. Only 48% of respondents to a Bankrate survey of 1,000 U.S. adults in May said they had enough emergency savings to cover expenses for at least three months.

With a lack of emergency savings, people are more likely to pay unforeseen expenses on credit cards or tap into retirement savings accounts.

In fact, Vanguard says the percentage of 401(k) participants making difficult withdrawals will hit an all-time high in 2022 set up.

Additionally, 32% of adults will not be able to cover a $400 emergency expense entirely in cash in 2021, according to to the Fed. Instead, their most common method is to deposit emergency expenses on a credit card and pay in installments.

“It’s really common these days, and a lot of people sometimes feel like they don’t know where to start,” said Winnie Sun, co-founder and managing director, Irvine, Calif.-based financial advisor. Sun Group Wealth Partners and member of the CNBC Football Association Committee.

Here are other common emergency calls and their average costs:

On average, it costs $70 to $150 nationwide to unlock a car door and up to $600 to replace a door key. Automotive industry website JD Power established.

Meanwhile, if your car breaks down or is involved in an accident, you may need to call for a tow truck.

According to statistics, the average cost of a trailer is $109 JD Power. However, several factors affect the price, such as your location and how far you need to go; you can pay up to $600 for 100 miles.

The average cost of an urgent care visit is estimated to be as high as $200, while a hospital emergency room visit can cost as much as $1,300. American Home Care.

last year, Homeowners spend an average of $1,953 on household emergency expenses, according to home services website Enter. Emergency spending will see the largest increases in 2021 due to natural disasters in Texas, California and New York; Angi found that 40% of respondents were affected by extreme weather events.

Some of the most common emergency home repairs include fixing cracked, frozen or leaking pipes; leaking roofs; overflowing toilets; gas leaks; electrical hazards; termite or mouse infestation; and mold growth, according to Home management platform thumbtack.

“Everyone should try to set aside an emergency fund,” says a certified financial planner. Caroline McClanahan, Founder life planning partner Based in Jacksonville, Florida, also serves on CNBC’s FA board of directors. “If they don’t have an emergency fund set aside, it’s important to know where to get cash when they need it.”

To better protect yourself against such high emergency expenses, consider the following alternative financial safety nets:

1. Use your credit card wisely: You really need to consider credit cards as a last resort, Sun says. If you do use a credit card, make sure to pay off the balance in full by the end of the month as a priority, she added. Otherwise, high interest rates can quickly increase the amount owed. “Use your credit card as a 30-day bridge, but commit to paying it off,” she says.

2. To set up a home equity line of credit: A home equity line of credit (HELOC) is a loan secured by home equity. It also serves as an emergency line of credit, Sun said. Applying for a HELOC is similar to a mortgage on a home, McClanahan added.

“You can turn on a HELOC and not use it until a disaster strikes,” she said.

HELOCs usually have lower interest rates than credit card rates. McClanahan pointed out.

“Depending on the bank, your interest rate can be 8% to 10%, whereas a credit card is 20% to 30%,” she said.

However, they tend to be variable rates, so you don’t want to use it if you don’t have to, explains McClanahan.

Seth Bellas, a branch manager at Churchill Mortgages, said earlier this year that this made it harder to “budget month to month”.

However, McClanahan said don’t wait until an emergency arises to apply for a HELOC; the key, she added, is to open it before you need it and pay it off as soon as possible. Give yourself 2-3 months to get set up, adds Sun.

3. Check roadside assistance coverage: If you get locked out of your car, need a tow, or have to pull your car out of dirt, sand, or snow, for a flat monthly or annual fee, the Roadside Assistance Program can help.

McLanahan suggests, but check with your auto insurance company first. Also check your policy to make sure what your coverage covers, Sun says.

Car insurers’ roadside assistance programs from WalletHub are often the cheapest option set up. However, it is often added to an existing policy, or is only available if the policy has conflicting and comprehensive coverage.

4. Plan ahead to avoid surprises: Whatever the emergency, it pays to plan ahead.

“If you have an older car with a lot of miles on it, you always have to be ready when the car breaks down,” McClanahan said.

Put money in a car fund just like you put money in an emergency fund.

The key, she adds, is to remember that when you save money, whether for short-term emergencies or long-term goals, you’re investing in yourself.

As for locked front doors, a good way to avoid huge locksmith bills is to keep a spare set of keys in a lockbox outside your home or in the hands of a trusted friend, McClanahan said.