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  • Writer's pictureFey Bruder Insurance

Auto Liability Limits

Updated: Mar 5

Auto liability insurance is car insurance coverage that is required by law. If you cause a car accident, and you are liable for the damages from that accident, liability coverage helps pay the other person’s expenses, for both bodily injury and property damage. Among other things, bodily injury can pay for emergency room visits, health care, and compensation for time off work. Property damage pays for the other vehicle/vehicles involved to be repaired or replaced, and it can pay for things like fences or mailboxes that were damage in an accident. We can write policies with split limits, meaning the bodily injury limit is separate from the property damage limit. For example - you might carry bodily injury limits of $250,000/person and $500,000/ accident with a property damage limit of $250,000. A single limit might carry $500,000/accident, with no sublimit for bodily injury or property damage within that total limit.

As health costs continue to rise and vehicle costs increasing, you need to reconsider your limits in order to protect yourself from becoming personally responsible for paying damages. If you carry what used to be considered an average limit of $100,000/person $300,000/accident and $100,000 in property damage, the most your company will pay for an accident involving only one other car and person is $200,0000 ($100,000/person and $100,000 property damage). You can see how a multiple car accident or an accident with very serious injuries could exceed this limit quickly. We have seen several accidents in our office, over the past few years, where the severity of the accident exceeded the limits the insured carried.

Our agency recommends split limits of at least $250,000 per person, $500,000 per accident and $250,000 property damage, or $500,000 combined single limit. You would be surprised at how inexpensive it is to increase your limits. If you would like a quote, call our office and we can figure it in just a few minutes.

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