Have you ever wondered about the three numbers that are part of your Auto Liability insurance, usually written in this form: XX/YY/ZZ?
The first number refers to the maximum amount of Bodily Injury Liability (BI) for an individual injured in an auto accident; the second is BI per coverage per accident; while the third covers Property Damage Liability (PD) per vehicle. For example a policy with 30/60/15 Liability coverage would pay up to $30,000 in BI per individual, $60,000 worth of BI per vehicle, and $15,000 in PD per vehicle.
Every state requires drivers to carry a minimum amount of Liability coverage under their Auto policy. Limits by state vary from 10/20/10 in Florida to 80/100/25 in Maine. These numbers have remained fairly stable for a number of years.
However, because a car accident can cost far more than the Liability minimums that most states require, people usually carry more coverage. The Insurance Information Institute recommends that you have at least $100,000 of BI protection per person and $300,000 per accident (known as 100/300).
If you hold the minimum coverage required by your state and you’re involved in an accident in another state that requires higher minimum coverage, the chances are that your policy limits will increase automatically to meet the other state’s minimum requirements.
We’d be happy to make sure that this feature applies under your Auto insurance – and to discuss the most cost-effective ways of protect yourself and your family from liability for accidents behind the wheel (such as increasing your Liability coverage or choosing higher deductibles).
For a complimentary review of your policy, just give us a call.