4 Ways to Keep an Auto Accident from Destroying Your Finances

Wednesday, August 12, 2015, 6:00 AM | Leave Comment

Auto accidents are traumatizing for anyone. From the physical trauma of the accident itself to the headaches that come from dealing with auto insurance companies, the entire process can have an adverse effect on your emotional well-being.

Beyond that, your financial status can also be impacted if you don’t have the necessary protection or you don’t follow some basic rules after the accident occurs.

The following four tips will help protect your finances after you’ve been involved in an auto accident.

4 Ways to Keep an Auto Accident from Destroying Your Finances

  1. Choose the Right Policy

    Prospective insurance policyholders almost always have a hard time choosing the right policy. You must choose an auto insurance policy that offers enough financial protection for you and your family.

    Most states require at least $25,000 liability coverage for insurance policies. If you were involved in an auto accident where the other party sustained significant physical damage, you’ll potentially be liable for hundreds of thousands of dollars.

    Look for a policy that’s not expensive like Youi cheap car insurance.

    The best way to cover these additional costs is to purchase an umbrella policy or add excessive liability coverage to your current policy. This will help cover additional expenses should you be sued in court by the other party for liability reasons.

  2. Consider Car Replacement

    If your vehicle were to be totaled in a collision and you purchased only the minimum amount of insurance required by law, you’ll be stuck having to deal with a huge bill to replace your vehicle.

    This is especially true for financed vehicles. Even if the insurance gives you a payout for a total loss vehicle, the amount might not be enough to cover the money you still owe on the loan.

    Consider purchasing GAP insurance, a product commonly offered by car dealerships that will help pay for any additional money that’s owed to the bank if your car is deemed a total loss.

  3. Hire a Qualified Lawyer

    The trauma that everyone experiences after a car accident can have an adverse effect on their ability to make decisions. If you’re unsure about who’s at fault for the accident or about dealing with the insurance company yourself, consider hiring a lawyer.

    Auto accident attorneys can be especially effective when dealing with incidents that involve semi-trucks. The rules are often different for these types of accidents because they involve a commercial vehicle, and a lawyer can help navigate through the messy process of maximizing insurance payouts and dealing with any court proceedings, if necessary.

  4. Always Buy a Low Deductible

    Most car insurance companies offer policies with deductibles of $250, $500, $1000 and $2000. These deductibles are what you pay out-of-pocket before the insurance company will pay for the rest.

    Buying a policy with a low deductible means that you won’t have to pay a significant amount of money to the auto shop if you get in an accident. This is a great way to save money especially since your premium will likely still be within your budget.

When buying auto insurance, you should always prepare for the worse. Buy a significant amount of coverage and use a reputable insurance company.

Information Source: http://www.ladahlaw.com/las-vegas-truck-accident-lawyer/semi-truck

Author BIO

Anica Oaks is a Freelance writer and web enthusiast. Read some of her published work on her Google+ page.

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