You might think that the only thing you can lose in a car accident is your car. Unfortunately, this isn’t the case. You can also lose your assets if someone decides to sue you. If you don’t want to lose everything you’ve worked for in one court decision, you’ll need to take steps to protect yourself. North Carolina is a great state to live in, but it’s essential to be aware of the laws regarding car accidents and how much someone can sue for a car accident. You can safeguard your assets and peace of mind by taking steps to protect yourself.
What are Minimum Insurance Requirements in NC?
To drive on North Carolina roads, you must have a minimum amount of car insurance. The minimum liability requirements are $30,000 for bodily injury per person, $60,000 for bodily injury per accident, and $25,000 for property damage per accident.
These limits are the absolute minimum that you can carry and still be in compliance with the law. If you cause an accident and your insurance limits are too low, the other driver can sue you for their damages. This liability you face is why it’s crucial to carry at least the minimum amount of insurance.
What if An Accident Is My Fault?
In NC, insurance company adjusters look at the circumstances of an accident by studying personal testimony, witness testimony, police reports, medical reports, and more. The laws governing the roads in NC rest on pure contributory negligence, which prevents any recovery of damages by someone who is partially at fault.
For example, if the other driver ran a red light and you were speeding, you might both be at fault for the accident. If the insurance adjusters found that you were both at fault, then neither of you could collect from the other’s insurance company. It’s unlikely that you would sue the other if you’re both at fault.
However, if you were drinking and rear-ended someone who suffered severe physical injuries, you could lose everything you own.
What Are the Consequences of a Lawsuit?
If you’re sued and don’t have any protection strategies in place, you could lose it all. The court can order your:
- Wages garnished
- Bank accounts frozen
- Property sold to pay for the damages.
If you own a home, the court can force you to sell it to pay for the damages. In some cases, the court may even order that you go to jail. Facing these consequences is why it’s so important to protect yourself from lawsuits.
How Much Can Someone Sue For?
There is no limit to how much someone can sue for in North Carolina. If you cause an accident and the other driver suffers severe injuries, they could sue you for millions of dollars. If you don’t have enough insurance to cover their damages, they can go after your assets. It’s essential to carry enough insurance to protect your finances.
However, it’s wiser to also prepare with asset protection strategies that keep your assets safe from any type of lawsuit.
How Can I Protect Myself From Lawsuits?
The best way to protect yourself from lawsuits of any kind is to protect your assets from judgments, including bankruptcy, with an Asset Protection Trust. These kinds of trusts can help shield your assets from lawsuits. They can also protect your assets from taxes and save your money from future long-term care costs.
With your assets in an irrevocable Asset Protection Trust, a court can’t take your investments to pay for damages. Instead, your property and money stay safe and protected in your trust.
If you’re worried about losing your assets to a lawsuit judgment, contact an experienced asset protection attorney today. They can help you understand your rights and how to protect yourself from lawsuits.
How Does an Asset Protection Trust Work?
An asset protection trust is an irrevocable trust that can help shield your assets from lawsuits. When you create the trust, you transfer your assets into it. Once the assets are in the trust, they are no longer a part of your estate. If you’re sued, the court can’t take your trust assets to pay for damages.
Asset protection trusts protect your assets from creditors, including judgments from lawsuits. A trustee manages the trust and has the discretion to distribute the assets to beneficiaries. You can be the beneficiary of your trust assets and receive distributions yourself.
If you’re interested in creating an asset protection trust, contact an experienced asset protection attorney today. They can help you understand how the trust works and how it can protect your assets from court judgments.
We Can Help
At Vail Gardner Law, we focus on asset protection strategies that keep your assets safe from any type of lawsuit, including those for car accidents. We understand how important it is to protect your hard-earned money and property. Contact us today to learn more about how we can help you.