Three Laws that Protect Consumers After Experiencing a Car Accident

There is no substitute for safety and security whether at home, behind the wheel or at the workplace. No automobile consumer/user would want to trade this to any other thing the car offers. Car accidents have become a daily occurrence especially in the big cities. Our ever busy and carefree life styles are not helping the matter either. Accidents can happen anytime and anywhere without any prior notice. While in some cases, they are caused by factors beyond our human control as in the case of a tire bursting on high speed, but in most cases we are largely responsible for them. We tend to overlook or play down some precautions like proper maintenance, over speeding, not texting while driving, etc that could have otherwise saved us. A lot of accidents happen within a split of a second, just a little loss of concentration, could result in loss of lives or damage to the car.

Over the past few years, there has been great effort by stakeholders in the automobile industry to sensitize their consumers about their rights and privileges as consumers, which they can always demand for in case of any eventualities. Many legislations have been put in place to help protect the average automobile consumer from being cheated, defrauded or abandoned as the case might be whenever an accident happens. There are indeed many factors that determine the rights a consumer can demand for, either from a dealer, private seller or an insurance company. It is important as a consumer to find out why your claims after an accident have not been responded to on time, and also to inform either your lawyer or attorney, when filling for claims after an accident. Some are these rights would depend on what a consumer uses the car for, whether private or commercial use, whether the car was bought new or old, whether the car is bought from a private owner or from a dealership store, and also whether the car is insured and the type of insurance covers it enjoys.


There are certain laws that have been implemented to protect car consumers after an accident. They include these three, the Auto Insurance Cover, Auto Dealer Fraud law, and the New Lemon Car Law.

Auto-Insurance Policy Cover.

This is an agreement between an insurance company and a place holder for a sum known as premium. Under this arrangement, the insurance company would be responsible for all liabilities up to a particular amount not exceeding $25,000, whether bodily harm or death was inflicted to the placeholder regardless of whether the client is responsible for the accident or not. This also extends to the other party if the place holder is responsible for the accident. A place holder can always involve his lawyer before signing an insurance policy.

Auto Dealer Fraud Law.

This law deals with transactions involving used cars. It serves to protect consumers from falling into the hands of fraudulent and mischievous dealership agents, and also to penalize agents who take undue advantage of their customers. A lot of consumers are in a way ignorant of the things they ought to look for in a car before finalizing a deal, and agents often take advantage of this to misguide the ignorant consumers. Most agents in their bids to make fast gains often fail to disclose sensitive information about a car’s previous state or history to a new buyer. The law is backed by the FTC regulations contained in 16 CFR 455 (the Used Car Rule).

New Car Lemon Law.

This law deals with transactions involving sale of new cars, and serves to protect consumers from been cheated by dealers. Under this law, a consumer is entitled for compensation if after buying a car as new, they discover that some functions were not working well.

It is very important for a consumer to be aware of his rights as an automobile user, and to always involve his attorney or lawyer in all dealings, especially before signing a legal binding agreement or when another party does not want to honor their own part of the agreement.
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