Can Getting Auto Insurance Help Me Avoid a Lawsuit?

Getting auto insurance may help an individual avoid a lawsuit, but it isn't a sure bet. We live in a litigious society where people are constantly filing lawsuits against individuals and businesses hoping to gain some type of monetary compensation for a perceived wrong perpetrated against them. Although carrying auto insurance is mandated by law, insurance companies hire hordes of lawyers whose job it is to reduce the company's exposure to financial loss as well as costly litigation.

What Would Life Be Without Insurance?

If there was no auto insurance product available to protect individual vehicle owners when accidents occur, courts throughout the land would be inundated with lawsuits aimed at obtaining financial compensation for losses incurred. People adjudged at fault for committing an accident might find themselves losing hard-earned assets to cover their financial responsibility. Without car insurance, drivers deemed at-fault may be required to make payments for an undeniably long period of time. Not only can assets be seized and forced to be sold, wages can be garnished exacting payment for the damages awarded in a court settlement. In a world without car insurance, lawsuits would run rampant with mostly lawyers benefiting from its absence.

Accidents Do Happen

Use of a motorized vehicle to carry a person from one place to another has become the standard for personal transportation in places around the world where public transportation is not readily available. Although you may be a cautious driver always following all traffic rules and regulations, an accident can happen where you may try to avoid something but hit something else causing damage. The result of the accident can have a devastating financial impact upon you if you don't carry the proper type and amount of insurance to cover your financial responsibility assessed from the accident. Without this coverage, injured parties would have no other choice but to bring a lawsuit against you to compel you to pay whatever damages the court decides.

Why Insurance May Prevent Lawsuits

Auto insurance is designed to protect you from financial ruin in the event you cause personal or property damage with your car. Smart insurance policyholders will carry enough coverage to either eliminate any out-of-pocket expenses or greatly reduce these if a claim against them is successfully waged. Sometimes car owners obtaining insurance can also get umbrella or excessive cost clauses or policies so any costs incurred beyond the limits set in their policy will be covered and not come from their personal finances. Additionally, insurance claim adjusters and lawyers work feverishly at convincing claimants to accept the dollar amounts contained in policies rather than bring the matter before a court.

Car Insurance Makes Good Sense

You need to protect your investment in your auto regardless of any liability that might present itself due to a possible accident. And, just as a homeowner must carry insurance to protect that asset against liability when someone visiting might trip and fall causing personal injury with really no fault on the owner's part, auto insurance acts likewise. There are many scenarios presenting themselves where damage and injury might be the result of an accident, but not really your fault. Or, the damage cause might not be something you could have avoided in the first place. Having sufficient auto insurance coverage will go a long way avoiding a lawsuit when insurance proceeds will cover any losses.

Related Questions and Answers

Car insurance safety ratings have a small bearing on your insurance premiums. Driving a car with numerous safety features will result in a small discount. The bigger things that affect your insurance premiums are your driving record, recent accidents and even your credit score. Driving a car with airbags, anti-lock brakes and other safety features will result in a small discount, but probably only in the 5% range. Other ways to lower your premiums is to take and pass a defensive driving course, or insuring multiple vehicles. While driving a car with a high safety rating will not save you a lot on your car insurance, the peace of mind it brings can be priceless.

California auto insurance requirements are 15/30/5 which translates into the following: The 15 means $15,000 in bodily injury liability coverage. This is the maximum amount that will be paid for one person that is injured in any accident. 30 is $30,000 bodily injury which is the maximum amount that will be paid for all injuries that are a result of the accident. The final number 5 relates to $5,000 property injury liability per accident. This covers damage to other people's property in the accident. This usually means damage to a car but can also relate to houses or fences. The required coverage is not sufficient coverage for a major accident.

There are only 6-7 different types of auto insurance coverage, but they can be combined to create any number of different types of insurance coverage plans. The main categories of insurance are bodily injury liability, property damage liability, comprehensive, collision, uninsured motorist and under-insured motorist insurance. There is also PIP or personal injury protection, and Gap insurance. When purchasing an insurance policy, it is a good idea to determine what type of coverage you need and then put together an insurance coverage plan. These different types of coverage can be mixed and matched to give you the appropriate insurance coverage for your needs.

An automobile insurance attorney can be a good idea if you are in a serious accident. The rate will vary depending on how complicated the case is and how good the attorney is. The rates typically start around $75 per hour and can run into the hundreds of dollars per hour depending on the case. If the case is a simple claim, there is the possibility of a flat rate fee. It is best to consult a number of lawyers and inquire about their rates. Seek out references from family and friends. It is important to have faith in your lawyer.