This entry was posted on Monday, January 19th, 2009 at 1:23 pm and is filed under Cheap Car Insurance. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.
January 19, 2009
Don’t sacrifice having the proper liability coverage to get low cost auto insurance. Find out what liability coverages are available in an auto insurance policy. This way when you get your next free insurance quote you are well informed.
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. Initial aid
2. Doctor bills due to the accident
3. Money for lost wages
4. Funeral expenses
5. Lawyer Fees
Property damage liability makes the damage that is cause due to an automobile accident.
1. Structural damage to homes, storefronts, etc.
2. Money to fix or replace other non-moving objects
3. Automobile damage or total loss compensation
So now the question is what limits of coverage do I need? Each state has there own minimum guidelines. Usually around $15,000/$30,000 $15,000 but that will vary by state. When you look at the coverage’s I just wrote down you might be thinking there are three numbers there not two I don’t understand. Bodily injury liability coverage comes in two forms either split limit coverage which is shown above or single limit 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.
What is right amount of liability coverage? The most common amount of coverage is a split limit of $100,000/$300,000 bodily injury with a property damage coverage equal to $50,000. People that take out lower limit are really exposing themselves to financial disaster if they can’t afford to pay the difference when an accident occurs. For example, say you have $15,000/$30,000 bodily injury coverage and $15,000 property damage coverage. You get into an accident that is your fault with two vehicles a five year Honda Accord and two year old Chrysler 300. There are three people in the Honda and one person in the Chrysler. All have minor injury but are brought to the hospital and the person driving the Chrysler stays overnight for observation. Their bills will run over your $30,000 maximum for Bodily injury and the person driving the Chrysler will have individual hospital cost of more than $15,000. What does that mean? Once your coverage is used up you will be responsible for the rest. With hospital cost as expensive as they are that could mean a very costly bill to you. This doesn’t even take into account the amount of property damage that needs to be paid out. Since you hit two cars the damage for both comes out at $19,000. That is another $4,000 out of your pocket. The worst part of the whole thing was you thought you had full coverage and that it didn’t matter what happened. Full coverage only means that you have liability coverage, comprehensive and collision coverage but your limits on liability are the most important. Make sure they are set properly.
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.
The preceding article was written by licensed insurance professional Joseph Welusz who tries to assist you in getting Free Insurance Quotes. He has written intriguing articles related to numerous insurance topics for QuoteMatcher.com. Where Insurance Quotes are always available for free.
By Joseph Welusz
Published: 8/4/2008
Best Deals That You Can Get for Car Insurance
You must be wondering what comprehensive coverage is in car insurance policies. Comprehensive coverage is a terminology in car insurance which offers protection against natural [...]
Affordable Auto Insurance for Teens
In order to find low auto insurance for teenagers one must first understand how the premium rating system works.
Automobile Insurance Review
Everyone wants to pay as little as possible for the greatest possible coverage. How do you get that? You can only get that by doing comparison shops of the various insurance companies and by going with the one that offers low rate auto [...]
Auto Insurance Coverage
Liability coverage is the type that is required by most states and it covers only that cost of auto repair, medical costs and lawsuits in an accident, if it is your fault.
Mail this post
read comments (3)
January 23rd, 2009 at 1:37 pm
[...] This video give you information about other benefits of comprehensive insurance coverage, [...]
January 25th, 2009 at 5:33 pm
[...] is an information about automobile insurance claim on auto accident insurance claims video, just watch this [...]
January 27th, 2009 at 1:39 pm
[...] any damage or loss include preventing from theft to the rental car. You will covered if you have a liability coverage on your current company insurance. But basically its only covers the driver and passenger only not [...]