Does Cheap 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 includes the injury that are suffered due to on automobile accidents.

1. First Aid at the Accident

2. Medical expenses for bodily injury

3. Restitution for lost salary

4. Final expenses

5. Lawyer Fees

Property damage liability protects you against damages that you cause to another in a car accident.

1. Homes, building, etc that receive structural damage

2. Restauration cost for other immobile objects

3. Vehicle repair or replacement costs

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.

Property Damage coverage is always the last number which is represented by $15,000 in the example above.

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: http://www.fubrus.com

About The Author: Joseph Welusz provides a rational way to get Cheap Car Insurance and it only takes a few minutes to getLow Cost Auto Insurance at QuoteMatcher.com

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