Does Inexpensive Car Insurance Equal Low Liability limits?

By Joseph Welusz

The amount of insurance you will need will always be determined to late, once you have an accident. To try to understand how to protect yourself, you first need to know what your liability insurance will cover. It is always broken up in two parts bodily injury and property damage liability.

Bodily Injury liability includes the injury that are suffered due to on automobile accidents.

1. First Aid at the Accident

2. Medical bills due to injuries

3. Restitution for lost salary

4. Death benefits

5. Lawyer Fees

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

1. Homes, building, etc that receive structural damage

2. Money to fix or replace other non-moving 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.

Single vs split limit: In example above of 15,000/30,000/15,000 in coverage, this first 15,000 would cover individual injuries to others obtained from the accident you caused up to 15,000 per person. The 30,000 represents the maximum pay out for injuries caused to the while accident. If you had a single limit of bodily injury coverage it would be equal to 30,000 for the extra accident broken up as 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.

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:

This article was written by licensed insurance agent Joe Welusz who tries to assist you in getting Free Insurance Quotes. He has written interesting articles related to various insurance issues for QuoteMatcher.com. Where Insurance Quotes are always available for free.