CHAPTER 6
PROTECTING YOURSELF AGAINST LAWSUITS
With the exception of no-fault states, whichmake it harder to sue based on the thresholds I discussed earlier, it’s not uncommon for lawsuits to happen following an accident. And if you have a higher income, an expensive car, wealthy parents, or potential higher income because you’re inmedical or lawschool, your chances of being sued go up. Plaintiffs can go after all your personal assets, including your bank accounts, any property you own— automobile and real estate — and so much more.
UMBRELLA INSURANCE Earlier, I discussed one way to protect yourself — umbrella insurance. It goes above and beyond your home and auto limits. On average, coverage costs $300 per year per $1 million. Depending on your situation, spending $300 to make sure you don’t have to pay hundreds of thousands of dollars can be well worth it! And if you have one or more teens in your family who drive, umbrella insurance can be an excellent idea, since you’ll be held liable if they cause an accident. TITLES Another thing to consider is titles. As seen in the horror story at
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