|Posted on July 22, 2012 at 6:35 AM|
If you've been looking for an affordable auto insurance quote, you may have seen some numbers that you didn't understand regarding the liability part of the coverage. Understanding it is real simple. In fact so simple, I can explain it to you in two minutes.
Here's how it works:
Let's say you see a coverage level of 25/50/25. What does it mean?
The first two numbers represent what your policy will pay in case you are at fault in an accident and the other party is injured. The numbers are represented in 1000's. The policy will pay up to $25,000 maximum for one person, and will pay up to $50,000 total if multiple are injured.
The third number represents property damage coverage. Again, if you are at fault in an accident, this policy would pay up to $25,000 for property you've damaged.
That's it! It's that simple!
Some companies may separate the third number into its own part of the liability. For example, it .may say "bodily injury" 25/50, Property damage 25. It still means the same thing.
What is the ideal amount of liability coverage I should be carrying? Answer: as much as you can afford! We live in a lawsuit-happy society in which you need to protect yourself as much as possible. This is common to see when selecting your level of coverage:
- (your state's minimum requirement)
I suggest staying the hell away from state minimum limits, no matter what state you're in (no state has adequate limits in my opinion). Here's what's important to know: These levels are NOT unit priced! That's why I say to quote all levels and go with the highest level that you can afford. What may surprise you is that in some cases, doubling liabilty coverage only increases premium by a couple dollars per month. And quadrupling coverage may only be $5-10 more per month. So always shop the next higher level. You may be surprised!
If you live in the states of Ohio, Michigan, Indiana, Pennsylvania, Virginia or West Virginia, you can get an auto insurance quote here. I handle all quotes personally and privately. I'll be happy to shop around for you to find the company with the best rate, and give you all the liability coverage options available.