19 Oct Lack Of Insurance Can Result in Bankruptcy.
Lack of insurance on your vehicle or home can lead to bankruptcy. It is an issure that too many drivers do not stop and think about. Please allow me to tell you a story to illustrate what I mean. I dropped off a document to one of my Chapter 13 Trustees and was returning home last Friday. As I was waiting to get on the highway due to heavy traffic, I was rear ended. Thank God I was able to control my car and not be thrown into the middle of rush hour traffic. When I jumped out of my car the driver was explaining he was sorry and did not want the police called. My office manger who was with me already had 911 on the phone providing our location. When my assistant asked why he did not want us to contact the police he explained that he was in this country illegally and has been for seven years.
Although it appears that we do not have any major medical damages my vehicle is quite another matter. The rear end of my vehicle is majorly crunched. The bumper is totally destroyed and the trunk will not close. My fear is that no matter what body repair is done to the vehicle the trunk may never seal properly again.
The driver of the vehicle did not have a driver’s license but did have insurance on the vehicle. Additionally I have insurance on my vehicle with full coverage. But for a moment let us stop and think of a more typical scenario that occurs today.
Everyone is looking to save money where ever they can. So often people will cut back on things that they think they do not need such as insurance. People think that they will be safe if they do not have insurance if they drive extra safe. But Murphy and life just seem to get in the way of our everyday plans as they say “(t)he best-laid plans of mice and men often go awry.”
If the driver who hit me did not have insurance the accident would personally cost him $3,000 – $5,000 minimum. Now if I did not have insurance in addition to that I would not only have to pay for the damage to my vehicle but I may lose my wages for time off of work to repair the vehicle. In addition I would be out even more money because I am estimating that they are going to need at least a week to repair my vehicle and a rental vehicle will be necessary. So without insurance one or both of us would be in a world of financial hurt which could lead to financial disaster. Disaster that could be the last straw that would lead one to filing bankruptcy.
Let’s talk about another scenario, liability only insurance. If the vehicle is old, people think that liability insurance is the best way to save on insurance. If I had liability only insurance and the other driver who hit me did not have insurance I would be out of luck because there is only insurance coverage if I caused the accident. Again I would be out a tremendous amount of money in an attempt to save a few pennies.
Sometimes no insurance or liability only insurance falls into the catergory of a penney wise and a pound foolish category. Don’t wait until you have an addicent to determine whether or not you have too much, too little or just enough insurance to protect you and your family. Your delay in waiting could cost you more than what you willing and/or able to pay.
In the case of this accident this gentleman did not want to cook at home and just stepped out for a bite to eat. His accident not only caused an insurance claim and damage against his brother in law’s vehicle but it may wind up in having him deported from the United States.
Why car insurance is required when filing bankruptcy, US auto and motorcycle insurance requirements and a list of US insurance companies.
Written by Rachel Lynn Foley, Kansas City Missouri Bankruptcy Attorney.