Most personal injury lawsuits are motivated by cash. They’re designed to hurt you, not help you.
If someone rear-ends your car and they don’t have enough insurance to cover the costs of repairs, their lawyer will almost certainly pressure them to sue you for as much money as possible.
In many states, these suits are called “no-fault” because they don’t involve assigning blame or responsibility; they target any available assets and demand compensation.
These lawsuits can be scary, but with the proper precautions, you can rest assured that your purchases won’t be at risk if a third party crashes into your car and sues you for damages.
Here are several steps that can help protect your assets from a lawsuit related to a car accident:
When you purchase a car insurance policy, you’re essentially buying protection for the car you own.
Most policies come with coverage for bodily injury and property damage; if you cause an accident, your insurance will help cover the costs of any damage and injuries sustained by other drivers.
If you’ve been careful to keep your policy up to date, you’re likely to have reasonably low rates. If, however, you’ve been cited for violating traffic laws, causing accidents, or have been involved in multiple car accidents, your insurance rates are unlikely to be very low.
If you’ve been experiencing a high car insurance premium, consider changing car insurance providers. Shop around until you find an affordable policy with a reputable company.
Modern cell phones come with GPS tracking devices built in. If you install a tracking app, you can use your smartphone to watch the location of your car in real time.
If your vehicle is damaged, the app will show you the impact location, and quite often, you will be able to take a picture of the accident scene. In the case of an accident, this GPS tracking device can also help you to prove that you were not at fault.
If you own a valuable car or want to protect a vehicle often used for business ventures, consider installing a standalone GPS tracking device. These devices are generally small enough to fit in your car’s fuse box and won’t be visible to passersby.
They’re easy to install and provide a constant feed of your car’s location. A GPS tracking device is an excellent way to keep tabs on your vehicle throughout the day.
If you’re worried about someone dinging your car when you’re not around, a tracking device can help you to know precisely when and where the accident occurred.
If you are financing or leasing your car, you can add a collision damage waiver (CDW) to your car insurance policy.
If you’re involved in an accident that results in significant damage to your car, a CDW will help to offset the costs that your insurance policy isn’t likely to cover.
If you’re financing or leasing a vehicle and don’t have a ton of cash on hand to pay for repairs, a CDW can be a real lifesaver. The amount of coverage you purchase will depend on the value of your car.
If you’re financing or leasing a vehicle, you should consider purchasing a CDW. It’s a small price to pay for a large amount of peace of mind.
An umbrella insurance policy is designed to cover you if a lawsuit related to a car accident places you in a financially precarious position.
If a negligent driver crashes into your car, leaving you with hefty repair costs, an umbrella policy will help to cover those expenses. If the driver who hits your car is underinsured, the policy will also help to protect your legal fees.
If you win a lawsuit, an umbrella policy will act as a safety net; collecting the compensation you deserve and distributing it according to the umbrella policy will be a significant monthly expense, but it’s well worth it if you’re ever in a position to collect on it.
If you’re financing or leasing a car and are worried about the legal repercussions of a car accident, a good umbrella policy can help you rest easy.
Conclusion
An automobile accident may be stressful, mainly if you believe you have been unfairly punished for the damage. If someone hits your car and sues you for damages, you don’t want to be unprepared.
By following these tips, you can rest assured that your assets are protected and that you’re doing everything in your power to protect yourself from false accusations. Car accidents happen for many reasons, not all of which are the driver’s fault.
If you find yourself in the position of needing to defend yourself against a lawsuit related to a car accident, there are some things that you can do to make sure that the outcome is fair and just for everyone involved.
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