What it Means to be Upside Down On Your Auto Loan & How GAP Insurance Can Help

Whether you are to blame for the accident or not, you can get stuck with a huge financial burden even after you receive your insurance settlement. But, by thinking ahead, you can avoid falling into debt after being involved in an auto accident. Read further to find out what you can do if your car is totaled and you are upside down on your auto loan.

 

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Upside Down On Your Auto Loan

This issue often comes up in situations in which a vehicle is totaled, or in other words, when the insurance company decides that the cost to repair your car is more than what your car is worth.

Most people purchase their vehicles with loans, but sometimes cars lose their value faster than the loan gets paid off, especially in the first two years of the loan. As a result, the amount that an insurance company has to pay for a totaled vehicle can be less than the remaining balance on the loan.

For example, suppose you still owe $10,000 on your car, but the value of the car was only $8,000 when it was totaled. The insurance company will pay the value ($8000) of the car—not the amount left on the loan ($10,000). You will, therefore, have a deficit of $2,000 ($8000 - $10,000) after your insurance company pays, and your bank or lender will probably want to collect this amount immediately.

 

How Gap Insurance Can Help

Using the example above, you can be in an accident in which the other person is completely at fault and despite your innocence, owe more than the insurance settlement and have no easy means of paying. One way to avoid this is to purchase what is called “GAP insurance”.

GAP insurance is a type of insurance often offered in conjunction with an auto loan. It pays the difference between what your insurance pays out and what you owe on the loan when the car is totaled—so that, at the very least, you break even.

If you make a significant down payment, so that it's unlikely that your loan balance will ever be more than the value of the car, then GAP insurance will be unnecessary. But, if you're heavily financing the purchase of your car, you may want to consider paying for GAP insurance as well. In fact, your lender may insist that you carry the coverage, and most people purchase GAP insurance through the lender that finances the purchase of their car.

GAP insurance can also be purchased through your auto insurance provider, and in some cases, it is automatically calculated into your auto insurance premium.

Furthermore, if you are leasing your car, it may be part of the lease. So, to make sure that you are not paying for it twice, always ask your insurer and/or your leasing agent if GAP insurance is already included in your monthly payments.

If you are involved in an automobile accident and need help, or want to learn more about GAP insurance and how it could affect your claim, contact a reputable personal injury attorney. Most offer no-cost, no obligation consultations and will let you know if you even need a personal injury attorney to resolve your claim. Talk to one before you sign anything or talk to any insurance adjuster.

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Are Hoverboards Safe for Consumers?

The Consumer Product Safety Commission (CPSC) is a United States agency whose aim is to protect consumers from unsafe products that can result in injuries or death when used. The CPSC works with companies to help create voluntary industry-specific safety standards and, in some cases, will impose mandatory restrictions when voluntary ones cannot be agreed upon.

As a preventative measure, the CPSC has the authority to ban products altogether if no amount of safety standards would protect the general public from unnecessary injuries. They may also issue recalls to reduce the risk of further injuries when a product is known to be unsafe.

When a Product’s Safety Is Unknown

In some cases, the CPSC may receive enough complaints from consumers that warrantan investigation into the safety of a particular product. When a product’s safety is questionable, the CPSC will conduct a variety of safety tests at their National Product Testing and Evaluation Center in Rockville, Maryland.

The results of these tests will determine what, if any, safety standards the CPSC will set. In January 2016, the CPSC saw a surge in the number of consumer complaints about hoverboards. These boards allow riders to “drive” by using the subtle movement of their torsos, legs, and feet.

 

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The number of hoverboards that made their way into U.S. households over the holiday season resulted in a huge increase in accidents causing injury, that brought into question the safety of these so-called smartboards.

Hoverboard Fires

To date, dozens of indoor and outdoor fires have resulted from the use of hoverboards, or self-balance boards as they are also called. While no one has been seriously injured in these incidents, fires caused by smartboards can lead to serious injuries or even death.

In order to address the public’s concern regarding hoverboards, the CPSC has begun testing the safety of several self-balancing boards including those made or sold by:

·         Hoverboard360.com

·         Uwheels

·         E-Rover Smart Balance Wheel

·         YOOLIKED

·         One Stop Electronic Inc.

This is just a sample of the approximately one dozen retailers and/or manufacturers the CPSC is actively investigating for safety.

 

Investigating the Cause of Hoverboard Fires

At this time, the CSPC doesn’t know what is causing hoverboards to burst into flames. However, their investigation has been heavily focused on the lithium-ion battery packs these units use as well as the circuit board that helps operate them. Overheating and ultimately combustion can result in products that use lithium-ion batteries without proper safety designs that prevent them from getting too hot.

 

Additional Safety Hazards

The CSPC isn’t just concerned about the risk of fire when using hoverboards. They’ve also taken notice of the rise of emergency room visits and serious injuries sustained by consumers when riding the self-balance boards.

As such, the CSPC has broadened the scope of their investigation to include the potential for falls when operating a hoverboard.

 

What is Being Done to Protect Consumers?

As the CSPC looks into fire and fall risks associated with hoverboards, a number of companies, groups, and agencies are taking a proactive approach to protect consumers. The world’s largest online retailer, Amazon, has voluntarily offered refunds to customers who return self-balance boards purchased through their site. 

Colleges and universities are banning hoverboard usage on campus to keep students safe from potential falls and fires that could quickly spread.

A number of government agencies, including the Federal Aviation Administration and U.S. Department of Transportation, are working closely with the CSPC in an attempt to put an end to fire and fall hazards as soon as possible.

Since there are currently no set safety standards for hoverboards, consumers are strongly urged to use caution when riding one. Some things consumers can do to reduce their risk of injury include keeping a working fire extinguisher nearby, wearing protective gear, and keeping away from roadways.

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What to Do Before Divorce

The decision to divorce should never be entered into lightly. Whether your marriage fell into ill repair over the last few years or became irretrievably broken over a single event, there are a number of steps you should take if you ultimately decide to file for divorce.

Although a divorce is often an emotionally trying time, it is also an occasion to aggressively protect your financial interests. The financial ramifications of divorce can have lasting effects on your fiscal health. If you prepare for divorce ahead of time, you stand a better chance of securing an outcome that makes it easier for you to transition and begin rebuilding your life.

Start Collecting Records

While you still have access to bank statements, pay checks, tax returns, credit card bills, and other financial documents, make sure to gather them and keep them in a secure location. Identifying documents like social security cards, marriage licenses, and birth certificates are also helpful to collect at this point since you will need them when you proceed with your divorce.

 

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Hire a Divorce Attorney

Before serving your spouse with divorce papers,speak with The Law Offices of Damian Nolan. They will advise you on what to expect as you enter a divorce including any additional steps you should take before filing. A divorce attorney will also work on your behalf to protect your financial interests. When you are ready to file, your attorney can help you draft your petition and be ready to take the next steps when your spouse answers your complaint.

Get a P.O. Box

To keep communications confidential prior to filing for divorce, make sure you route your mail to a different location. Opening a P.O. Box is one of the easiest and most cost effective ways to ensure your privacy as you work with your lawyer in preparation for filing.

Set up Your Own Accounts

If you currently have joint accounts with your spouse, you will want to establish accounts in your name alone. This will give you the opportunity to deposit your paychecks into your own account and ensure your money is kept safe and secure. Depending on the state in which you live, your divorce attorney may also advise you to withdraw half of the money in any joint accounts you hold with your spouse. 

At this point, you should also pull your credit report and note any recent account openings that you were not aware of. Continue to monitor your credit report for any unauthorized changes. Consider establishing your own credit outside of the marriage as a way to launch your financial independence separate of your spouse.

Keep Your Children in Mind

If you and your spouse have children together, always remember to keep their best interests in mind as you begin the divorce process. While you want to make sure you leave your divorce as financially stable as possible, you also want to keep your children as a main priority. Should your divorce result in a custody dispute, you will want to ensure you have acted in a manner that shows you as a responsible and suitable parent.

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Las Vegas Divorces & Child Custody

When couples get married, their marriage is recognized at the state level. When marriages break down and end in divorce, each state also has their own laws that govern divorces. The restrictions and requirements regarding divorces can vary a great deal from state to state. Historically, Nevada has relatively lenient divorce laws compared to other states.

 

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Although most of the Las Vegas laws that surround divorce are straightforward, it is still important couples understand each of them as they make the important decision to dissolve their marriage. 

No Fault Divorces in Las Vegas

The state of Nevada is strictly a No Fault Divorce state. This means all Las Vegas couples file for a no fault divorce. A no fault divorce is one that does not place blame on either spouse. Instead, irreconcilable differences or incompatibility is cited as as the reason for ending the marriage.

Although neither spouse is considered responsible for the marriage’s end, a reason for the divorce still needs to be stated as the official grounds for divorce. In Nevada, this is formally referred to as “irretrievable breakdown.”

No fault divorces can be easier to navigate since neither spouse is attempting to place blame on the other for behaviors or actions that ultimately caused the end of the marriage. Even still, a Las Vegas divorce attorney can help explain the Nevada divorce process and advise you on your rights. And, if children are involved, it is always beneficial to have an attorney help you understand issues involving child custody and support. 

Other Ways to End a Marriage

While Nevada only recognizes no fault divorces, some couples can end a marriage via annulment. There are only a few circumstances where a marriage can be annulled:

1.   Consent not given (usually involving minors)

2.   Incapacity (lack of understanding in entering the marriage)

3.   Fraud

If any of these can be proven, a spouse can seek an annulment rather than a divorce in Nevada.

 

Filing for Divorce

In order to file for divorce in Nevada, at least one spouse must be a resident of the state for at least six weeks. Once this residency requirement is met, either spouse can file a Complaint for Divorce. After the complaint is filed, the named spouse will need to be served with divorce papers.

If both parties can agree on matters involving property division, child support and custody, the process of divorcing in Las Vegas can be done quickly. After all relevant issues have been sorted out, a Final Decree of Divorce will be entered. There is no waiting period at this time for Las Vegas couples seeking a divorce. Once the divorce decree is entered, the marriage is over and the couple is officially divorced.

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