Protecting Your Assets in the Event of a Car Crash
Car accidents are not inevitable, but they do occur. Most drivers will either experience or witness an accident at some point. Getting behind the wheel of a car seems such a natural act that it can often be hard to believe that an unfortunate incident may be just around the corner or beyond the next stretch of motorway.
The key to dealing with a car crash is to have the right level of insurance in place so that in the event of serious claims being made against a driver following an accident, the driver is protected properly.
Getting the right insurance coverage
Car insurance costs initially depend on a driver’s age and driving record. They also depend on a range of other factors, some of which a driver may choose to include in a basic insurance policy. Sometimes, there is a tendency to go for the cheapest insurance option possible, especially if the driver is relatively young and the basic premium is high. However, this may prove to be a false economy as the potential costs of being involved in a car accident can be very significant. If the right level of coverage is not in place, drivers may find that some of their assets are at risk with an unfavorable judgement.
What exactly are assets? They are what a driver actually owns that could be potentially set against debts or other financial commitments. They can include a house, jewellery, cars or savings accounts. Choosing the right motor insurance policy to cover all the possibilities that could arise in the event of a car accident is essential. If the right levels of coverage for injury, legal costs and other expenses are taken out, then drivers may find their personal assets at risk.
Major costs to consider
When thinking about accidents, most people immediately think of their vehicle and what it will cost to repair or replace it. Drivers who use their car for business should make sure that insurance covers them for this type of use, in the event that they are involved in an accident when on business. Otherwise, a policy may be invalid, and any resulting costs may have to be paid by the individual. Insurance policies will generally cover the expenses incurred by vehicle damage or write-off, but drivers need to consider not only what other assets might be in the vehicle, such as computer equipment, but also the most expensive costs involved in an accident, which can often be the medical fees associated with injuries.
As with any injury, the cost of medical care and compensation has to be taken into account. Normally, an insurance company will instruct specialist medical solicitors to pursue any claims on behalf of the driver. Depending on the circumstances, however, the driver of one vehicle may be pursued by the solicitors acting for the driver of another vehicle. Insurance policies must take into account the possibility of large medical bills, so issues such as medical negligence claims and loss of earnings through injury should be factored in.
When taking out a policy, drivers should discuss all options available for the safeguarding of assets and make sure they are fully protected.