A car crash could cost tens of thousands of dollars or even more. Most people do not have adequate financial reserves to fully cover such costs. Trying to work those expenses into a budget can be difficult.
Property damage alone could exceed a year’s salary for some people, and injuries can multiply the lasting financial consequences of a recent wreck. Insurance is what protects people in motor vehicles and pedestrians from catastrophic financial losses when car crashes occur.
The liability insurance coverage required by state law will pay for the damages that a driver causes when they are at fault for a wreck. However, insurance won’t necessarily cover all of your costs. There are limits to what you can expect from an insurance company when you need financial compensation.
The policy limits are the absolute maximum
Every insurance policy has a set financial limit. The insurance company will never cover more than that policy limit, regardless of the extent of the damage caused in a crash.
It is a very common practice for people to carry as little insurance as the law or their financial institution permits in an attempt to save money. If those individuals later go on to cause crashes, their policy limits may be so low as to leave others with tens of thousands of dollars and losses.
When you understand what policy limits apply to your claim, you won’t attempt to negotiate for an impossible outcome.
You can only claim verifiable losses
An insurance claim will cover the basic expenses that stem from a crash. Property damage coverage can help you fix your vehicle and replace your broken mobile phone. Bodily injury coverage will pay for your hospital bills and help you pay your bills until you get back to work.
There will need to be financial records or employment documentation to help affirm the accuracy of what someone claims to have lost in the crash. Keeping copies of every receipt or invoice will be crucial to ensuring that you secure adequate compensation, especially if you attempt to negotiate a lump sum settlement.
Knowing what you can expect from insurance providers can help you resolve all the financial obligations that arise after a motor vehicle collision.