This coverage will pay for injuries suffered by others by accidents you cause. Your policy will set limits for how much can be paid to each person injured and a total for the entire accident.
For example, let’s say that your limits are set to $50,000 per person and $100,000 total. If you cause an accident that injures three people, and person A’s medical bills are $25,000, person B’s are $40,000, and person C’s are $20,000, you’re covered as each falls below $50,000 and the total is $85,000, below the $100,000 limit.
This is the maximum amount that your policy will pay for damage to the property of others, either a vehicle or other property. Typical limits for this coverage range from $25,000 up to $100,000.
Collision Insurance protects your vehicle from the damage caused by an accident that you or someone else may have caused. Accidents can include those that occur with other vehicles and those that involve inanimate objects, like buildings or guardrails, or a hit and run situation.
Comprehensive Insurance is also referred to as “other than collision” as it covers scenarios not covered by collision. It is an optional coverage that protects you against things you cannot control. Some common items covered here include, accidents with animals, flooding, falling trees or objects, theft, glass or windshield damage, and vandalism
When combined with collision insurance, comprehensive and collision coverages commonly referred to as “full coverage.” While giving you the best chance of having all your claims paid, be aware that there are still exclusions on most auto policies.
It’s important to talk to your auto insurance agent to discuss any particular coverages you are considering.
for each injured person
for injuries per incident
for property damage
As you can see, the range of limits available are large and for good reason. The State minimums limits of $30,000/$60,000/$25,000 aren’t enough to give you peace of mind.
For example, the $25,000 minimum property damage coverage is unlikely to cover an accident with a luxury vehicle like a Mercedes or a BMW. The damages could easily exceed $25,000 and you could be sued for the excess, putting your personal assets at risk.
It’s important to note that you can set coverage levels based on your personal needs, which cannot fall below the state minimums.
Determining the right amount of coverage requires considering your specific situation, like the value of your vehicle(s), the number of drivers you’re insuring and their ages, and your personal driving habits.
If you have a long commute or drive a lot, you should consider more insurance as you’re on the road more often.
Like any insurance product, auto insurance is designed to give you peace of mind knowing that you and your loved ones are protected in case of an accident or other incident.
Make sure that your coverage limits will protect you in the event something happens, and set your coverage limits to minimize out of pocket expenses and protect the assets you’ve worked so hard to obtain.
Given all the variables to consider, making an informed auto insur- ance decision requires investigating all the options and figuring out what’s right for your situation.
Our agents are here to help, we will listen to your needs and review the offerings of a variety of providers. Together we can make an in- formed decision.
As your needs evolve, we can continue to ensure that you’re getting the best possible value. Call or email us today, and let’s get started!