Does Inexpensive Car Insurance Equal Low Liability limits?
Before you try to decide what the right amount of coverage should be. You first need to understand what Automobile Liability Insurance covers. There are always two factors that make up liability coverage. There is bodily injury and property damage liability.
Bodily injury liability covers injuries do to a car accident.
1. Initial aid
2. Medical bills due to injuries
3. Compensation for loss of income
4. Final 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, you are probably thinking to yourself what coverage limits should I have? Minimum liability guidelines are set by each individual state, they are usually 15,000/30,000/15,000 worth of coverage. The reason there is 3 numbers instead of two is because body injury liability is usually set in split limits but you could request a single limit of coverage.
Split Limits: Then if you decided to have split limit coverage the 15,000 from the paragraph above misrepresenting individual coverage for injuries incurred during an accident. While the 30,000 is the total for injuries that incurred for the entire accident with a separate 15,000 for property damages. If you had chosen a single limit of coverage there is only one limit to be divided however need up to the maximum chosen for bodily injury.
The last number in your liability coverage is always your property damage limit in the above cast is was also $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.
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.
