Money Smarts Blog
What to do After an Accident
Jul 10, 2023 || Dasan Hawk, Insurance Sales Agent
I’ll be honest, many insurance policies are confusing. There’s too much legal jargon and, to be honest, who wants to read all that? Let me set the record straight: Everyone should read it. Knowing your policy helps you get the most bang for your buck in terms of coverage.
You wouldn’t tell your child to skip out on their homework, would you? (In case my kids are reading this, the importance of a good education can’t be understated!) The same applies to your insurance policy, whether it’s auto, home, health or something else. Too often, people focus on the bottom-line dollar amount rather than the coverage. Let me say it again. Do. Your. Homework.
Insurance is meant to help protect you against things largely out of your control, like an accident, loss or natural disaster. The better coverage you have, the better protected you’ll be if you ever need it. Since four in five travelers are planning a road trip this summer (according to Travel Agent Central), let’s dive a little deeper into the importance of having auto insurance, and how it works after an accident.
You’ve had an accident … now what?
If you’ve ever been in a car accident, I don’t have to tell you that few things can derail your day faster than the sound of screeching tires and crunch of metal. In fact, an accident occurs every 13 minutes (even to careful drivers), according to the Bureau of Labor Statistics. When you factor in the economic and societal impact, including medical and emergency costs, property damage, legal costs, loss of productivity and more, the National Highway Traffic Safety Administration reports the average financial impact of crashes was $340 billion in 2019 (about $1,000 per person in the U.S.).
That’s why good coverage is imperative. One of the more common liability insurance policies is $100,000/$300,000, which covers $100,000 of the injured party’s losses related to medical bills and other claims, and a payout of up to $300,000 for the total accident. In some states, minimum insurance requirements are only $30,000. Because accidents often cause much more damage, I always, always, always preach expanding your coverage.
So, you’ve been in an accident. First things first: Make sure everyone’s okay before reporting it to your local police. If there were injuries or you suspect a driver to be under the influence, call 911 right away. If the accident was a minor fender bender, police likely won’t come to the scene but you’ll still want to report it while you’re there. Next, don’t just take the other driver’s word that they’ll reach out — getting their insurance and contact information is crucial.
Then you’re going to want to document the damage and call your insurance agent as soon as possible — ideally within 24 hours (if you wait too long, your carrier could become suspicious of why you waited and may deny coverage). Typically, the insurance adjuster assigned to your claim will go through the police report and view photos of the damage to help determine who was at fault. From there, your insurance provider will walk you through the rest of the claims process and get your vehicle to a body shop, if needed.
PRO TIP: WITNESSES CAN HELP If there was a witness(es) to your accident, ask for their contact information so they can help confirm your story with insurance, if needed.
Other types of insurance
Obviously, I could talk about insurance all day long. (And I do. It’s my job, after all.) Beyond having a solid auto insurance policy in place, there are a few endorsements I strongly encourage for homeowners. My non-negotiables are:
Water backup coverage*
Although basements are a fun place to hang out, they’re a nightmare if your sump pump fails or sewer backs up. Did you know damage from water backup isn’t usually covered by your homeowners insurance? That’s why, particularly in the Midwest, specialty insurance is a must to help protect your home.
Utility line coverage*
Buried utility lines, including water, gas, electric, cable and more, run from your home to the street. If any of these lines break or become damaged, you’re responsible for the repair. Adding utility line coverage can help offset those costs.
*Talk to your insurance agent. Typically, both these endorsements can be added to your existing homeowners or renters insurance policy.
It’s easy to forget about insurance because it’s not a tangible “thing.” My advice: Don’t let it disappear into the background. Set a bi-annual reminder to review your coverage. Whether you installed a new home security system, upgraded your heating and cooling or have a new driver — call your agent. As Ferris Bueller once said, life moves pretty fast … and that means your coverage and premiums could change, too.
What to do After an Accident
Jul 10, 2023 || Dasan Hawk, Insurance Sales Agent
I’ll be honest, many insurance policies are confusing. There’s too much legal jargon and, to be honest, who wants to read all that? Let me set the record straight: Everyone should read it. Knowing your policy helps you get the most bang for your buck in terms of coverage.
You wouldn’t tell your child to skip out on their homework, would you? (In case my kids are reading this, the importance of a good education can’t be understated!) The same applies to your insurance policy, whether it’s auto, home, health or something else. Too often, people focus on the bottom-line dollar amount rather than the coverage. Let me say it again. Do. Your. Homework.
Insurance is meant to help protect you against things largely out of your control, like an accident, loss or natural disaster. The better coverage you have, the better protected you’ll be if you ever need it. Since four in five travelers are planning a road trip this summer (according to Travel Agent Central), let’s dive a little deeper into the importance of having auto insurance, and how it works after an accident.
You’ve had an accident … now what?
If you’ve ever been in a car accident, I don’t have to tell you that few things can derail your day faster than the sound of screeching tires and crunch of metal. In fact, an accident occurs every 13 minutes (even to careful drivers), according to the Bureau of Labor Statistics. When you factor in the economic and societal impact, including medical and emergency costs, property damage, legal costs, loss of productivity and more, the National Highway Traffic Safety Administration reports the average financial impact of crashes was $340 billion in 2019 (about $1,000 per person in the U.S.).
That’s why good coverage is imperative. One of the more common liability insurance policies is $100,000/$300,000, which covers $100,000 of the injured party’s losses related to medical bills and other claims, and a payout of up to $300,000 for the total accident. In some states, minimum insurance requirements are only $30,000. Because accidents often cause much more damage, I always, always, always preach expanding your coverage.
So, you’ve been in an accident. First things first: Make sure everyone’s okay before reporting it to your local police. If there were injuries or you suspect a driver to be under the influence, call 911 right away. If the accident was a minor fender bender, police likely won’t come to the scene but you’ll still want to report it while you’re there. Next, don’t just take the other driver’s word that they’ll reach out — getting their insurance and contact information is crucial.
Then you’re going to want to document the damage and call your insurance agent as soon as possible — ideally within 24 hours (if you wait too long, your carrier could become suspicious of why you waited and may deny coverage). Typically, the insurance adjuster assigned to your claim will go through the police report and view photos of the damage to help determine who was at fault. From there, your insurance provider will walk you through the rest of the claims process and get your vehicle to a body shop, if needed.
PRO TIP: WITNESSES CAN HELP If there was a witness(es) to your accident, ask for their contact information so they can help confirm your story with insurance, if needed.
Other types of insurance
Obviously, I could talk about insurance all day long. (And I do. It’s my job, after all.) Beyond having a solid auto insurance policy in place, there are a few endorsements I strongly encourage for homeowners. My non-negotiables are:
Water backup coverage*
Although basements are a fun place to hang out, they’re a nightmare if your sump pump fails or sewer backs up. Did you know damage from water backup isn’t usually covered by your homeowners insurance? That’s why, particularly in the Midwest, specialty insurance is a must to help protect your home.
Utility line coverage*
Buried utility lines, including water, gas, electric, cable and more, run from your home to the street. If any of these lines break or become damaged, you’re responsible for the repair. Adding utility line coverage can help offset those costs.
*Talk to your insurance agent. Typically, both these endorsements can be added to your existing homeowners or renters insurance policy.
It’s easy to forget about insurance because it’s not a tangible “thing.” My advice: Don’t let it disappear into the background. Set a bi-annual reminder to review your coverage. Whether you installed a new home security system, upgraded your heating and cooling or have a new driver — call your agent. As Ferris Bueller once said, life moves pretty fast … and that means your coverage and premiums could change, too.
