Does Cheap 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. Initial aid

2. Medical bills due to injuries

3. Money for lost wages

4. Funeral expenses

5. Legal counsel costs

Property damage liability makes the damage that is cause due to an automobile 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.

The number that always ends your liability coverage is your property damage limit in the above example it is represented by $15,000.

By this point you could probably sue how state limits that are usually 15,000/30,000/15,000 might not be adequate coverage. With medical cost and the price of automobiles and property rising you might want to consider higher limits.

The most common amount of coverage around the country is split limit of 100,000/300,000/50,000 but you might want to consider even higher limits. The cost to raise liability from 15,000/30,000/15,000 to 100,000/300,000/100,000 or even higher shouldn't cost more than a couple of hundreds of dollars per year. I'll personally spend a little more now to save thousands later just in case I was sued for expenses costing more than my coverage limits.

Article Source: Main Articles

About The Author: Joseph Welusz provides advise to get Cheap Car Insurance quotes. You always get the Low Cost Auto Insurance when you comparison shop at QuoteMatcher.com

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