My insurance will cover all costs after an accident | Insurance Myths

The Role of Deductibles

A deductible is the amount you agree to pay before your insurance kicks in. For instance, if you have a $500 deductible and your repair costs are $2,000, you’ll pay the first $500, and your insurance will cover the remaining $1,500. Choosing a higher deductible can lower your premium but increases your out-of-pocket responsibility after an accident.

⚠️Exclusions to Be Aware Of

Insurance policies also include exclusions, which are specific scenarios or items that are not covered. Some common exclusions include:

• Intentional Damage: Insurance won’t cover damages caused deliberately.
• Wear and Tear: Normal vehicle maintenance and depreciation aren’t covered by insurance.
• Special Equipment: Custom parts or expensive add-ons may not be included unless specifically added to your policy.

📋How to Be Better Prepared

To avoid surprises after a claim situation occurs, take these proactive steps:

• Review Your Policy: Understand your coverage limits, deductibles, and exclusions.
• Consider Additional Coverage: Umbrella policies, uninsured/underinsured motorist coverage, or gap insurance can provide extra protection.
• Keep an Emergency Fund: Set aside savings to help cover unexpected expenses that insurance may not handle.
• Talk to Your Agent: If you have questions or aren’t clear about limitations or exclusions after reviewing your policy, reach out to your insurance provider or agent for clarification. Regularly review your insurance with a professional to ensure it meets your current needs.

Insurance is a vital safety net, but it’s not a blanket guarantee that all costs will be covered. By understanding the details of your policy, you can be better prepared for whatever comes your way. Contact us to ensure you have the right coverage in place.