Every year, there are millions of automobile accidents,
causing physical injuries, property damage, and even death. When property
damage and injuries arise, some drivers may seek out payday loans to cover the
costs of the accident and/or the resulting unpaid bills.
While a payday advance can function as a safety net by
covering smaller costs associated with auto-accidents, such as an insurance
deductible, doctor's visit, or utility bill that has gone unpaid as an effect
of the collision, these types of loans are not large enough to cover the full
cost of such accidents.
Payday loan lenders rarely grant loans in excess of $1,000
due to the high interest and short payback period associated with such
advances. Thus, this type of service is less than ideal in a serious, costly
accident. While this may make these types of loans less desirable to some
seeking a loan, it is actually a great service to the borrower, as it protects
him/her from taking out more money than he/she can realistically pay back.
In anticipation of unforeseen accidents, loan lenders
encourage individuals to establish a budget that allows for a savings account.
However, approximately one-third of Americans do not have savings accounts,
demonstrating that other protective measures need to be in place for motorists.
Don't count on a payday loan to cover all your
accident expenses; take the safe road and choose the insurance type that works
best for your budget and peace of mind.
