If I get in a wreck and the total damage is higher than my policy´s dollar limits, will the insurance company still cover me?

Getting into a car accident can result in a large amount of total damage to the vehicle. Depending on your insurance company and the details of the policy that you purchased, the amount of coverage that is available may vary. In general, if the repair costs will exceed the coverage limit that you purchased, then you may need to pay a larger amount to fix the car than you expected.

Declaring a Total Loss

In some situations, you insurance company may still provide coverage for your vehicle, but not in the way that you expect. Some insurers may determine that your vehicle is a total loss because the cost of repairs will exceed the coverage limit and the vehicle will cost too much to fix when compared to replacing the vehicle. In that situation, your insurer will usually pay for the replacement cost of a comparable vehicle or give you the funds up to your limit amount.

Paying for Repairs

Even if the repair costs exceed the amount of coverage, some insurers will still pay for the repairs up to the limit amount if the vehicle is not declared a total loss. The rest of the repairs will usually become your responsibility rather than the company’s responsibility, so you may need to pay more than the deductible for the final repairs on your vehicle. Depending on the situation, the cost that you can expect to pay will vary.

Insurance for your vehicle does not always cover every situation, especially for a collision that badly damages the vehicle. Contact us to speak to an agent for more information about your options and the solutions that are available after an accident.