A Car Accident Could Ruin You. Here’s How to Avoid It.
Most people know that car accidents can be deadly, killing both passengers and pedestrians and potentially doling out injuries with lifelong consequences. But we also must remember that a car accident can lead to financial ruin.
What can you do to protect yourself financially in the event of a car accident?
The Threat of Financial Ruin
Some accidents are small in scale and are unlikely to affect your life in any meaningful way. They can be resolved with a smile and a handshake from both parties, and they’ll be quickly forgotten about after the minor damage is repaired.
But other car accidents can be much more devastating. One or more vehicles can be totaled. One or more people can be killed or seriously injured. If the other driver doesn’t have insurance, or if they flee the scene, you may be on the hook for the costs, depending on the nature of your insurance policy. And if you’re the one at fault, you may be financially liable for the damages, regardless of whether your insurance policy covers it.
So what should you do to avoid financial ruin after a car accident?
Understand Your Local Laws
Your work starts long before you ever hit the road. Your first priority is to better understand your local laws and ordinances. This way, you can better comprehend how liability works and determine whether you have ample protection for yourself in the event of an accident.
For example, do you know if D.C. is a no-fault state for auto accidents? Or even what a no-fault state is?
It’s no secret that traffic laws and liability issues can be notoriously complex. But it’s still your responsibility to understand them to the best of your ability. Consider talking to a lawyer if there are areas that you don’t fully understand.
Invest in Good Insurance
Next, make sure you invest in a good car insurance policy. You’re legally required to have car insurance in the United States, but even so, many people attempt to drive without it. You need a robust insurance policy that covers not only direct damages, but also gives you liability coverage. More coverage is better, though it will also increase the costs of your recurring premiums.
If you already have insurance in place, read your contract carefully. Make sure you fully understand exactly what the policy does and doesn’t cover, and consider upgrading if necessary. Umbrella coverage can give you an even broader level of protection.
Drive Safely
Obviously, you also need to drive safely. Practicing safe driving minimizes your chances of ever having an accident, reduces the severity of any accident that does occur, and minimizes your chances of being found liable for the accident.
- Respect all laws, ordinances, and posted signs. It’s your responsibility to respect all laws, ordinances, and posted signs. If you don’t understand something, research it.
- Remain sober and focused at all times. You also need to remain sober and focused at all times. Most people know how irresponsible it is to drive while intoxicated, but they may underestimate how dangerous it is to drive while tired or distracted. Focus on the road and stay alert.
- Reduce speed and increase following distance. When in doubt, it’s a good idea to reduce your speed and increase your following distance. The combination of these strategies greatly minimizes your chances of an accident, because it buys you more time to react to anything that happens on the road. It also reduces the severity of impact if there is one.
- Remain aware of increased risks. Certain areas and circumstances have higher risks than others, so remain aware of these and avoid them if you can. For example, it’s a bad idea to drive in inclement weather.
Exercise Caution After an Accident
If you do end up in a car accident:
- Stay at the scene. Hit and run offenses are taken very seriously in most jurisdictions. You are very unlikely to flee the scene successfully, so stick around.
- Do not admit fault. No matter how the accident occurred, do not admit fault at the scene. If you do, even great lawyers won’t be able to help you.
- Prioritize safety and help. Call for emergency help and assist anyone you can. Get yourself to safety and get medical attention for anyone who needs it.
- Gather evidence. Do everything you can to gather evidence at the scene of the accident. Take photos, take videos, and jot down witness testimonies. Also take down the personal information of everyone involved in the accident.
- Get a police report. It’s highly beneficial to get a police report after an accident. Verify the details before signing off.
- Hire a lawyer. Hiring a good lawyer can help you find the most advantageous position in any car accident. Find someone knowledgeable and reputable in your area and trust their advice. They’ll help you better understand your unique situation and will offer strategies that can minimize the financial damage you suffer – or maximize the payout you can receive from insurance companies. Unfortunately, this is not something you can easily do on your own.
Most people can easily avoid financial ruin from a car accident by safely driving, understanding the law, conducting themselves properly after an accident, and securing good insurance coverage. Most of this work is proactive, so don’t neglect it.
