Few things are more frightening and stressful than realizing you are at fault for a car accident. You may have only looked away from the road for just a second, or an environmental hazard caused you to lose control of your vehicle temporarily. Even the briefest of moments can have catastrophic consequences, not to mention, consequences that you’ll have to compensate.
Whether you were driving uninsured or maxed out the limits of your policy, you might be in trouble when you find yourself unable to cover the due balance. In such circumstances, your assets may be up for grabs to cover the necessary payment. To protect yourself in times like these, see the details below.
What to Do If Your Assets Are Vulnerable After a Car Accident
Regardless of whether you are at fault or the victim of a collision, there are multiple pieces of documentation and evidence you must collect immediately following a car accident. As the negligent driver, these materials will be crucial to the protection of your assets, as they will form an accurate portrayal of the events that led to your collision. The victim will not be successful in requesting compensation for damages that did not occur as a result of the accident, and they will be unable to exaggerate the necessary payment.
To ensure that your case is bulletproof against any potentially false claims, gather the following evidence after the crash:
- Police report
- Photograph and video evidence
- Insurance claim
As you’re filing each piece of documentation, remember to avoid any speculation of fault. This may worsen the circumstances for you and endanger your assets further. Next, review the ownership of your assets. Ensure that they are owned and titled in the following ways:
- Any car that you own should be titled under the primary driver. (Even if you were not the negligent driver, if a vehicle that is under your name is damaged in an accident, your assets may be exposed.)
- Review your joint ownerships, as these may also be at risk if the damages exceed the limits of your auto insurance policy.
If your assets are of significant value, you may need to take your protection strategies a bit further. The following strategies may also be available to you:
- Place your assets into a trust.
- Utilize your retirement accounts to protect your funds.
- Acquire real estate homestead protections.
What to Be Careful of When Protecting Your Assets
It’s best not to proceed in these protection strategies on your own, however. You will need the assistance of a lawyer since specific routes of action could potentially cause you more trouble than relief. For example, if you were to transfer titles immediately after the crash, this will serve little purpose, as the defendant’s attorney can have those transfers reversed, as they would be fraudulent.
Let your car accident lawyer advise you through the litigation process so that you do not have to experience garnishments, foreclosures, and other types of collections after causing a car accident. Get in touch with a lawyer today to explore your options.