08/12/2026
Hey, let’s go over what actually happens when you cause an accident and have full coverage.
Mike is driving home from work when he looks down at his phone for just a second.
When he looks back up, Sarah’s car is stopped in front of him.
Mike hits Sarah’s car.
Sarah’s car has $12,000 in damage.
Mike’s car has $8,000 in damage.
Mike has full coverage with a $1,000 deductible.
Because Mike caused the accident, his liability coverage would pay for the damage to Sarah’s car, assuming he has enough property damage coverage.
His collision coverage would cover the damage to his own car. Since his deductible is $1,000, Mike would pay $1,000 toward his repairs and his insurance would cover the remaining $7,000.
This is a simple example of why knowing what coverages you have — and what your deductibles are — matters when you’re involved in an accident.
