Auto Liability Limits
Ever wonder what your auto limits cover? Auto coverage can be broken down into two categories: Bodily Injury and Property Damage. Auto liability coverage limits are written as 3 number such as 100/300/50. In this example the 100 is the maximum payable amount to one person for bodily injury which is $100,000. The 300 refers to the maximum payable amount for bodily injury per occurrence which is $300,000. Lastly the 50 is $50,000 and that is the maximum amount payable for property damage per occurrence.
Each state has its own minimum coverage amount that a person must have. In Ohio that limit is 25/50/25 or $25,000 per person, $50,000 per occurrence and $25,000 for property damage. Minimum auto coverage varies by state. So, what happens if you get in an accident in a different state that has a higher minimum coverage? If you are involved in an accident out of state that has a higher minimum coverage, your insurance matches that limit while driving out of state.
The amount of coverage you have does affect your premium. The higher the coverage you select, the higher your premium will be. The deductible you select can affect your premium as well. The higher the deductible you select, the lower your premium will be. That is because when your select a higher deductible, you are retaining more of the financial risk.
Lastly, everyone should review their auto insurance policy once or twice a year just to make sure that they are comfortable with the coverage limits that they have. Adding more coverage will cost you more money but can save you thousands of dollars in the event of a crash!