In every state, especially in California, a law mandates all car owners to get liability insurance. The essence of getting liability insurance is that it protects both car accident victims and at-fault drivers. In the case of at-fault drivers, liability insurance would help in paying out claims against them.
If you are the victim of an accident, liability insurance will help boost the chances of receiving compensation. Can I lose my house due to a fault car accident is one question motorists always ask.
Car accident injury claims do not go as planned most of the time. Even though getting liability insurance is compulsory in every state, some drivers still do not have liability insurance. Motorists also do not consider that liability insurance policies possess the maximum amount of compensation paid out.
It becomes the at-fault driver’s responsibility for all losses beyond and above his liability insurance policy limits. No matter the case, losing a personal injury claims case would affect your finance.
Your personal property, savings, and home could be at risk if you are found guilty of a car accident. This is why we always recommend speaking with a lawyer if you have been involved in an accident so they can analyze your case and know the next and right steps to take.
Can I Lose My House Due To At Fault Car Accident
You could be facing a lawsuit if you are responsible for a car accident, and this doesn’t matter if you have liability insurance or not. One important benefit of having liability insurance is that your insurance company would provide you with a lawyer for your trial. With that being said, you can also face lots of financial issues if the accident you are at fault for involves injuries.
This is also not dependent on having liability coverage, but you should know that having liability insurance doesn’t protect all of your assets. If your policy limits are inadequate, then you could stand the risk of losing your home and other valuable properties.
Liability policies have some form of policy limits, but most motorists do not have adequate limits. If you lose claims filed against you, you could be looking at a formal judgment claiming you owe the plaintiff a high amount of compensation.
To meet up with paying for the compensation, you might have to sell off some of your properties. You can also be forced into bankruptcy if you do not have the assets to meet your compensation bill. In some cases, you might sell your home so you can meet up with the plaintiff’s compensation, and considering all that is at risk here.
It is essential that you have the right kind of liability insurance the moment you decide to get behind the wheels. One more thing that could really help you is getting in touch with an attorney and allowing the attorney to help you out.
If you get involved in a car accident, the first thought that comes to your mind is taking responsibility for the accident. However, even if you feel you are responsible for the accident, it is important that you first get in touch with a lawyer and discuss your case before you go ahead and accept responsibility for the car crash.
There is also a possibility that despite feeling responsible for the accident, the other driver involved in the accident too might have in some way contributed to the accident. This is where the lawyer comes in and defends you. Lawsuits involving car accidents can be costly sometimes, and this is true if they have multiple fatalities and several car pile-ups.
Not being properly insured can cost you to sell your house and other properties, so you can compensate other people involved in the accident you are at fault for. However, if you have the right kind of liability insurance, then the chances of losing your home to compensate car accident victims reduce greatly.
Conclusion: Can I Lose My House Due To At Fault Car Accident
Being properly insured means having a generous liability insurance policy and complementing this policy using a personal umbrella insurance policy. In addition, the personal umbrella insurance policy helps in offering additional protection in case of a lawsuit.