You Could Lose All Your Assets After an Accident (even if you have insurance!)
And that’s not even the worst part. If you’re involved in an accident where you are the at-fault party, you could end up in a situation where a portion of your wage/salary is taken from you each pay cycle (i.e. garnished wages). Obviously, this is a horrible situation to be in, but it is a situation that you could likely find yourself in. Nearly six million auto accidents occur every year with two million of those drivers experiencing permanent injuries each year. Unfortunately, car accidents are an exceedingly common occurrence and you could find yourself in that situation when you least expect it.
You might be thinking, “Isn’t this why I pay for car insurance?”
That’s exactly why you pay for car insurance. But, the question is: Is your car insurance sufficient to protect you and your assets? The answer to that question is likely “no” if you are a frugal spender and look for any opportunity to save money. If you fit that description, you more than likely have minimum liability coverage on your auto insurance policy, which in many situations is not enough to cover the medical bills of the injured party. Given the constant increase in medical expenses in the U.S., the minimum auto insurance coverage is usually eaten up pretty quickly.
But I have full coverage, I’m fine!
You may be thinking you have nothing to worry about because you have “full coverage” on your auto policy, but you are more exposed than you could possibly know. All “full coverage” means is that you have opted-in to all the available types of coverage under an insurance policy. It does not mean that you have good or sufficient insurance coverage. You could have “full coverage” and still have the minimum liability protections mentioned above and you would still be exposed.
What happens if your auto insurance coverage is insufficient? Well, a couple of things can happen. The injured party can (1) claim benefits through their uninsured/underinsured motorist (“UM”) insurance carrier OR (2) they can come directly after you, obtain a judgment against you, seize your assets, and garnish your wages until their claims are satisfied. Moreover, even if they were to claim through their UM carrier, the UM carrier could come directly after you and essentially do the same thing. Scary stuff.
But it’s too expensive!
I know we all love saving money, but having low coverage is extremely dangerous and can jeopardize everything you have built for yourself. The question then becomes: how much is enough coverage? Unfortunately, there is no one-size-fits-all approach to this situation, but the best thing to do is to consult with an insurance agent that isn’t just trying to get you cheap insurance, but rather one that is trying to get you the best coverage for your money. You would be surprised at how little your insurance premium increases when you increase your coverages.
If you want a number to have in mind, some people recommend carrying $100,000 of bodily injury protection per person, $300,000 per accident, and $100,000 of property damage liability. So get out there and start shopping for some new insurance to make sure you are protecting yourself and all your assets!
If you’ve been involved in an auto accident in Georgia, contact Jaraysi Law for one of the best car accident lawyers. We’ll provide you with professional legal counsel and get you the compensation you deserve. We are ready to listen to your story and take you from your lowest point back to where you belong! Call us today for a free strategy session at 404-951-3513!