Many drivers expect insurance to cover all their expenses after a car accident but often face unexpected costs and denied claims. Misunderstanding policy terms, fault determinations, and legal options can lead to financial and legal challenges. Attorneys like those at Rispoli & Borneo P.C. can attest to the confusion many accident victims face when handling insurance matters.
Full Coverage Does Not Mean Everything Is Covered
One of the most common misunderstandings is the belief that “full coverage” means every expense related to an accident is paid by insurance. In reality, full coverage typically includes a combination of liability, collision, and comprehensive insurance, but it does not necessarily cover medical bills, lost wages, or other damages. Policy limits and deductibles also apply, meaning there are still out-of-pocket expenses in many cases.
Insurance Companies Do Not Always Offer Fair Settlements
Many people expect insurance providers to compensate them fairly without question. However, insurance companies operate as businesses and often seek to minimize payouts. Adjusters may dispute injury claims, argue about fault, or delay payments in an effort to reduce costs. Accepting an initial settlement without reviewing the long-term impact of an accident can leave a person with significant financial burdens later.
The At Fault Driver’s Insurance Will Automatically Pay For Damages
Some believe that the responsible driver’s insurance will immediately cover all damages. In reality, liability coverage applies only if fault is clearly established and the policyholder’s limits are high enough to cover the damages. If the at-fault driver has minimal coverage or none at all, victims may need to rely on their own uninsured or underinsured motorist policy to recover costs.
Medical Bills Are Not Always Paid Upfront
Many believe that an insurance provider will cover medical expenses as they arise. In most cases, victims must cover costs initially and then seek reimbursement through their policy or legal action. Personal Injury Protection (PIP) or Medical Payments (MedPay) coverage may help, but these benefits vary by state and policy terms.
Minor Accidents Do Not Always Mean Minor Injuries
Some drivers believe that if their vehicle has little damage, they do not need medical attention. However, injuries such as whiplash, concussions, and soft tissue damage may not show symptoms immediately. Seeking medical care and documenting injuries is important, especially when filing an insurance claim.
You Do Not Have To Accept The First Settlement Offer
Insurance companies often present an initial settlement offer quickly, but that does not mean it is the best option. Many early offers do not account for long-term medical expenses, lost wages, or ongoing pain and suffering. Consulting with a legal professional, such as a car accident attorney, can help determine whether a settlement is fair or if further negotiation is necessary.
Police Reports And Witness Statements Matter
Some believe that their word alone will be enough to prove their claim. While personal statements are important, objective evidence carries more weight. Police reports, medical records, and witness statements can help establish fault and support a claim when dealing with an insurance provider.
Filing A Claim Does Not Automatically Increase Insurance Rates
Many drivers avoid filing a claim because they fear their premiums will rise immediately. While this is possible, rate increases depend on factors such as fault determination, claim history, and state laws. In some cases, failing to report an accident could lead to more significant financial consequences.
Final Thoughts
Misconceptions about insurance coverage can lead to unnecessary financial stress after an accident. Understanding policy limitations, knowing what to expect from an insurance company, and gathering the right documentation can make a difference in the claims process. Being informed helps prevent unexpected complications after a crash.