Has your insurance agent ever explained your auto insurance coverages to you?
There are different parts of your auto insurance policy. The first is liability. The minimum state required limits are $30,000 per person, $60,000 per accident, and $25,000 for property damage. Those are the minimum limits you are required by law to have on each vehicle. You will see them represented as 30/60/25.
The first 2 numbers are the bodily injury limits. The $30,000 is the most the insurance company will pay for any bodily injury per person in an accident that you are found liable for. The $60,000 is the most they will pay for any bodily injury per accident. Example: 3 people are hurt in an accident that is found as your fault and each person has $25,000 in hospital bills from the accident which equals a total of $75,000. The insurance company is only required to pay to the policy limit of $60,000 per accident. Guess who gets to pay the $15,000 difference? YOU do.
The $25,000 is the property damage limit, which would cover the damage to the car you hit. If you cause $30,000 worth of damage to their car, your insurance company will pay $25,000 and you will be responsible for the other $5,000. The $25,000 limit is per accident, no matter how many cars. If you cause a 3 car pile up you could be paying for all 3 cars to get fixed.
Going to higher limits does not always result in higher premiums. I have seen car insurance quotes where the higher limits of 100/300/100 were actually cheaper than the state minimum limits. If you think it is too expensive to have higher limits, stop and think how expensive it would be not to.
If you need to look at getting auto insurance stop by our office in Sugar Land or call us at 281-491-6565.
The companies we have for auto insurance are:
Safeco, Travelers, Progressive, Mercury, Imperial, Homeowners of America, and GMAC