It’s tempting to think that if you have auto insurance in place, you would never need to worry about paying for expenses resulting from an accident. Most insurance policies can indeed cover the expenses resulting from an average type of accident. However, there are instances in which a policy might get exhausted. At The Select Insurance Agency, serving Coppell, TX, and the surrounding areas, we want to help you prepare for any accident. Keep reading to learn about types of policies that might exhaust your insurance policy.
What Does It Mean To Exhaust a Policy?
To exhaust a policy means that you have hit or exceeded the maximum amount the policy can pay on your behalf. Each auto policy will have a maximum amount. You should pay attention to these amounts as they are crucial to your coverage. If a policy hits or exceeds that maximum, any further expenses would need to be paid out of pocket.
What Kinds of Accidents Would Exhaust a Policy?
Accidents resulting in tremendous damage or injury could easily exhaust a policy. This often happens if the accident was your fault and others are seriously injured. Medical expenses that your insurance company must pay could quickly eat up the maximum allowed payout of the policy.
Accidents that result in legal action may also exhaust a policy quickly. This includes incidents in which others involved in the accident might sue you.
Can This Be Avoided?
To avoid paying out of pocket for expenses, you might want to consider having an umbrella policy in place. This type of policy can pick up and pay when other policies have been exhausted.
If you want to learn more about umbrella insurance, please contact us at The Select Insurance Agency serving Coppell, TX, and the surrounding areas.
