Common Mistakes | Ask The Attorney

Joel and I look for, advertise, and work on car wreck cases every day. Two main areas where people often make mistakes are: 1 – not having adequate insurance to protect them, and 2 – people are doing bad business when they buy a car.

First, there are many insurance companies that advertise for people to tailor their insurance coverage to them. Ultimately, this means the cheapest offer. That’s fine until you need the cover. A key principle of insurance coverage is that you buy enough insurance to protect your assets. A minimum limit policy sounds cheap and might not cost a lot a month, but it only pays $ 25,000 for property damage and $ 25,000 for personal injury.

Who remembers here when you could buy a brand new full size pickup for $ 25,000? Today I would guess that most new full size pickups cost almost twice as much. If you cause an accident, someone has to pay the difference between the amount of coverage and the amount of damage.

We regularly represent people who have over a quarter of a million dollars in medical bills. If you’re just starting out in life and can afford to file for bankruptcy, a minimum restriction policy is fine. Still, buy uninsured car insurance and health insurance.

Second, the March issue of Car and Driver had an article showing the difference between paying too much for a used car and financing it at a high price. A 2012 Chevy Cruz costs $ 10,041 when bought correctly. The same car costs $ 20,919 if you overpay and finance too long. Shop smart because the insurance company has to pay for it your car If it is damaged, only the real value of the car will be paid for. Most people are disappointed with the amount they receive for their property damage. There are services like CarFax and Consumer Reports that help people determine the fair value of a vehicle they want to buy. In the long run, these services have a lot of value.

Buckle up, drive safely and as always, your recommendations will be appreciated! 256-764-0112

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