CHAPTER 7 Protecting Yourself Ag ourself Against Lawsuits Horror Story: Your Car, Your Fault Madison had her parents’ car while she was at college. She caused an accident that involved multiple cars. Thankfully, there were only some minor injuries; however, the drivers and passengers in other cars all filed lawsuits for negligent infliction of emotional distress. The total amount they sought was around $150,000 in damages. However, because the car was still in Madison’s parents’ names, they’re the ones at the receiving end of the suits, so they and their insurance must fight and/or pay. One way that Madison’s parents could’ve protected their assets is by making sure the car was in their daughter’s name—and only hers. Not that any parent wants their child to deal with this situation, but, in this case, Madison would have far fewer assets. Plus, since she caused the accidents, she should be the one held liable. With the exception of no-fault states, which make 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 in medical or law school, 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. 28
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