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Does Inexpensive Car Insurance Equal Low Liability limits?
You will never know how much insurance coverage you will need until you need it, so it's better to be safe than sorry. First let's take a look at what Auto Insurance Liability covers. There are two parts to your liability coverage the first is bodily injury liability and the second is property damage liability.
Bodily injury liability covers just that, injuries that are caused do to an auto accident:
1. Emergency aid at the scene
2. Doctor bills due to the accident
3. Money for lost wages
4. Funeral expenses
5. Lawyer Fees
Property damage liability protects you against damages that you cause to another in a car accident.
1. Structural damage to homes, storefronts, etc.
2. Restauration cost for other immobile objects
3. Car restoration or replacement expenses
So, what coverage limit are right for you? Every state compiles there minimum guidelines individually. 15,000/30,000/15,000 is the minimal norm but that may vary from state to state so check your state guidelines. You might have noticed that there are three coverage figures and not two. This is because bodily injury liability usually comes in a split limit unless you request a single limit of coverage.
Split Limit coverage: Limits are split into two for bodily injury coverage and then there is a separate coverage for property damage. If you take the example from above $15,000/$30,000 coverage, the $15,000 represents the total amount of bodily injury coverage that will be paid out to any one person during an accident. The $30,000 represents the total amount of bodily injury coverage that will be paid out for the entire accident. If you had a single limit of coverage it would include a maximum to be paid out but no individual maximum and it could be divided however needed.
Property Damage coverage is always the last number which is represented by $15,000 in the example above.
You have probably realized the disadvantage of carrying stat minimum limits 15,000/30,000/15,000. With the price of cars rising and the already high costs of property around the country it makes sense to have more than the 15,000 for property damage. With medical expenses at there highest ever it only makes sense to raise your bodily injury limits as well.
100,000/300,000/50,000 is the most common amount of liability coverage within today. The cost to the consumer to go from state minimums to 100,000/300,000/50,000 of even more coverage isn't that much more expensive. It just makes sense to me to pay a little more now for more coverage. Rather then thousands more later. I was found at fault in an accident and caused, because I didn't have coverage to pay for all the expenses I caused to to the accident.
About the Author The preceding article was written by licensed insurance agent Joe Welusz who provides Free Insurance Quotes. He writes interesting articles on various insurance topics for QuoteMatcher.com. Prior to getting Insurance Quotes on the web visit Joe's website for free money saving insurance tips.
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