Insurance Made Simple (pt. 3)

In part 1 and part 2 of our “Insurance Made Simple” series, we’ve introduced the basic terms and definitions included in any auto policy, and we’ve also discussed the different types of coverage that are available in a given policy as well. In part 3, we conclude our Insurance Made Simple series with a brief discourse on deductions, coverage limits, and what to do in the case of an accident:


A deductible is the amount of money you agree to pay to have your car repaired or replaced if you have a claim covered by your policy. Choosing a higher deductible means that you might pay less for your insurance premium now, but should you get into an accident, you will probably have to pay more out of your own pocket to cover the repairs.

Coverage Limits:

There are limits to each type of coverage. Should you incur an accident that is covered by your policy, your insurance provider will agreed to pay for damage up to this limit. Choosing a higher limit means that you might pay more for your insurance premium now, but this could also protect you from having to pay for other people’s expenses later.

What to do in case of an accident:

Accidents can be rare, but it’s important to know the proper steps to take should you ever happen to be involved in one:

1.    Stay calm. Determine the extent of injuries of damage. If needed, obtain medical assistance.

2.    Call the police to file an accident report. Don’t leave the accident scene.

3.    Limit discussion of the accident. Talk only with the policy and your insurance agent/representative.

4.    Get the facts and essential details at the scene (see graphic below).

5.    Report even a minor accident to your insurance company immediately.

6.    Check the status of your claim. Contact your insurance claim representative.

Well, there you have it…that’s all you need to know about your auto insurance policy. Happy driving!

For additional information regarding your auto insurance policy, check out:

Relevant Articles:

What is Property Damage Liability Coverage – Auto Insurance Made Simple

What is Property Protection Coverage – Auto Insurance Made Simple

Collision Coverage – Auto Insurance Made Simple

What is Bodily Injury Coverage – Auto Insurance Made Simple

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