What to do With Your Accident Insurance Money

Insurance is an important thing. It protects you from tragic events that would otherwise break the bank. For example, if you get in a car crash, the insurance company should give you enough money to replace the car. In this video, you will learn what you should do with this insurance money.

In this episode, a woman calls into the show and explains how she was in a car accident that totaled her car. In this instance, the car insurance company did an excellent job and gave her the cash value of her car. However, this lady is having trouble making a decision on how to use that money.

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She wants to finish paying off the rest of her debt on one hand. On the other hand, she also needs a replacement car. Dave explains to her that she didn’t gain anything from this accident. Though it is tempting to use that insurance money to pay off her debt, she needs to find a reliable car first. If she gets a good deal on a car and has money left over, then she can use it to pay off the debt. Whenever you have a debt, it should be paid off as soon as possible so that it stops accumulating interest.


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