Please reload

Recent Posts

Why Is Insurance So Important? An Unfortunate Truth

February 14, 2018

Please reload

Featured Posts

Why Is Insurance So Important? An Unfortunate Truth

February 14, 2018


Lots of people are irresponsible. Lots of people are selfish.


Lots of people drive around without insurance.


I constantly meet with clients who get hit by a driver who doesn’t have car insurance. Some of these clients read my last article and decided to protect themselves with UM/UIM coverage, some of these clients did not (read it - seriously, it only takes 3 minutes).


However, almost all of these clients ask the same question:


“Why don’t we just sue the guy for everything he’s worth?”


An Unfortunate Truth


You can sue the other driver. You can go through the lengthy litigation process. You can go to court.


You can win $10,000,000.00 at trial!


But collecting that money without insurance coverage? That’s the tough part.


Unless you are suing one of the Kardashians who has lots of money and assets or a company, most people will not have assets that you can recover.


Why? Because of something put in place to protect people from debt collectors called the Homestead Act.


Homestead Act Protections


There are lots of things you cannot collect:


               Someone's home

    People’s furniture

               Food in their pantry

               Tools or books


               Two firearms, 'Merica

               Athletic equipment

    Sports equipment

               A motorcycle, 3 wheeler,

               4 wheeler, or car for each family member with a driver’s license

               12 heads of cattle

               120 fowl (bummer, right?)

               Family pets


    IRAs & 401Ks

    Life Insurance and Annuities


On top of that, they get to keep $30,000.00 if the individual is single or $60,000.00 if the individual is part of a family.


After all of those protected exemptions, what is left for you to collect?

Probably nothing.


Is it right or fair to you?

Probably not.


As unfair as that may be, it is the unfortunate truth.

Share on Facebook
Share on Twitter
Please reload

Follow Us

I'm busy working on my blog posts. Watch this space!

Please reload

Search By Tags
Please reload

  • Facebook Basic Square
  • Twitter Basic Square
  • Google+ Basic Square