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Can I lose my house due to at fault car accident?- can an attorney protect it?

Personally, I have seen my friends lose their cars, pieces of land, and other valuables due to an at-fault car accident. But, Can I lose my house due to at fault car accident? If yes, How do you avoid this? What else can they take after an at-fault car accident? Alright!

According to Amaro Law Firm injury lawyers, The USA alone experiences more than 7.2 million car accident yearly, and more than 19,937 cars crash every day. According to the same website, the USA sees at least 831 crashes every hour and 14 accidents every minute.

Can I lose my house due to at fault car accident? The answer is a big Yes!

It is very possible to lose your house as a result of an at-fault car accident if the damages and liabilities from the accident exceed the amount of insurance coverage you have, or if you are unable to pay the resulting expenses, and a court orders the sale of your property to pay off the debts.

But, How do you safeguard your house and other assets in case you are to blame for the accident? Apart from insurance, are there means? Alright, this article explores exactly the details of such questions. Below are the contents to be covered in detail.

Page Contents

What is an at-fault car accident?

An at-fault car accident is any auto accident that you negligently caused. You will be deemed the cause of the accident based on witness statements, and evidence gathered at the car accident scene like the location of damages, skid marks, analysis of the footage from a nearby CCTV camera, and other factors.

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If you are found to be responsible for the car accident, the other party has the right to recover Compensatory and punitive damages from you. So you could be sued for the damages and face financial consequences as a result.

Can you lose your house due to an at-fault car accident?

One potential consequence of causing an auto accident is the loss of your assets including your house. If the other party sues you for damages and a verdict is won against you, you will be required to pay out of your pockets or savings unless you were smart enough and bought adequate car insurance.

Car insurance, and more especially liability insurance coverage helps you to pay such damages and losses incurred by the third party in a car crash you negligently caused.

It is mandatory across the USA states to show proof of financial responsibility before you are allowed to drive your car. One of the ways you could show financial responsibility is by procuring adequate insurance coverage. Each state has its own minimum liability coverage, so I recommend you revise your state’s car insurance policies.

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I personally have a friend whose future income and other assets have been attached/garnished due to the car accident she was responsible for. This friend of mine chose only the minimum required coverage and was asked to pay $100,500 damages, an amount that was way higher than her policy limit of $50,000.

Steps to take after an at-fault car accident

If you asked for advice from any car accident attorney or any personal injury lawyer after an accident, the answer will probably not accept fault as yet. I also emphasize it, please restrain from accepting accident fault right at the scene.

 Do not make any statements that the other party could use against you. If you are involved in a car accident, there are some important steps you can follow to protect yourself and safeguard your assets like your house.

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First of all, make sure you and your passengers are safe. if any are injured seek medical attention right away. Nothing comes before seeking medical attention and this will later prove you suffered injuries and therefore you too deserve compensation. 

In some states, their comparative negligence systems allow even the at-fault party to get compensated, so do not spoil this only chance. 

You should also exchange with the other driver your personal information like phone number, car insurance information, addresses, etc. You should also gather evidence by taking car accident scene pictures, pictures of the damages, bodily injuries, skid marks, etc. 

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You should then call and invite the police to come and compile a car accident report and wait to receive a copy if possible. Call and inform your car insurance and if possible seek the services of a car accident attorney right away. 

Be calculative of the words you use to answer questions from police and insurance companies. If possible ask them to speak to you through your attorney. Many people have been declared at fault or partially at fault for the accidents they did not cause. You do not want to be one of them, right?

Preparing for an at-fault car accident

To minimize the implications of an at-fault car accident, it is very important to plan ahead of the schedule. For instance, you could decide to increase the limit of your car insurance coverage, or keep adequate savings to help you in such emergencies.

For example, In preparation for an at-fault car accident, I have recently decided to buy full coverage car insurance and also boosted my liability insurance coverage to $300,000. Increasing my insurance policy gives me a piece of mind because I know my policy limit is high enough to protect my assets in case I caused a car accident. 

 Once you know how car insurance works together with deciding earlier seeking the guidance of the car accident attorney, largely increases your likelihood of saving your house in case of an at-fault car accident.

Legal representation in an at-fault car accident

If you are sued for damages due to the at-fault car accident you caused, it’s high time you hired a car accident to protect your rights and defend yourself against losing your assets.

An attorney can help you best understand the legal process and the best actions to take, and how to mitigate possible consequences of the accident. This may include negotiating a fair settlement with the other party or defending you if the case goes to trial. 

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A car accident attorney knows better how to prove liability. For instance, you could have been speeding or running a stop sign, but also the other driver is partially at-fault because he was speaking on the phone while driving. Such proofs could get you off the hook and or have your verdict reduced.

Insurance coverage for at-fault car accidents

Everyone has their own insurance needs for instance you may want to protect your expensive ride. Smart people like you should also think about planning upfront for liability issues by buying adequate car insurance coverage. 

For example, the minimum car insurance coverage in California is $15,000 for one injured person, $30,000 if more than one person is injured and $15,000 to cover any property damages ($15/30/15)

The minimum required car insurance coverage in Texas is $30/60/25. You should not go for the minimum required coverage unless your budgets are so tight. Buy enough coverage and also consider guarding your own car by buying collision and comprehensive insurance coverage too.

A personal Liability car insurance policy is the coverage you will need to buy to protect your house and other personal assets, therefore, consider buying higher coverage other than going with your state’s minimum required coverage.

Using the 2 examples above, $30,000 for California or $60,000 in Texas won’t protect your house if you caused an accident. You will need much higher liability policy limits in California, Texas, and other states if you are to safeguard your house.

Higher liability insurance policy limits not only protect your house but protects also your other assets like business, other valuable assets, and your current/future income.

Other steps to protect yourself and your assets

This article emphasized more about buying higher insurance policy limits to protect your house and other assets. But are there other ways you could safeguard your house?

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Other than having adequate car insurance coverage, there are other proven ways you could protect your house from at-fault car accidents. For instance, you can create an emergency fund to help pay for unexpected events like medical bills and repairs for the damaged car. 

Alternatively, you can also think about establishing a trust, or creating a prenuptial agreement to protect your house and other assets in case of legal actions against you.


An at-fault car accident can have serious legal and financial consequences including the possibility of losing your home and other assets. I recommend you take important steps in avoiding car accidents for instance by driving responsibly, defensive driving, and by observing traffic regulations.

If you are involved in an at-fault car accident, I advise you to seek medical attention, contact and inform the police and seek legal representation. Those will help you to safeguard your house and other assets.

Take time to understand your legal rights and options, and take the necessary precaution as explained in the article to minimize the consequences of the car accident, protect your assets and guard against other impacts of the wreck.

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