When it comes to purchasing auto insurance, there are multiple limits to choose from. The amount of coverage you have depends not only on the dollar amount selected, but the type of limit as well.
Here’s a breakdown of the different types of limits and how they work:
For liability and uninsured motorists coverages:
Liability limits: 250/500/50
-$250,000 is the maximum amount the insurance company will pay for each injured person
-$500,000 is the maximum amount paid for all injured persons combined
-$50,000 is the maximum amount for property damaged
Uninsured motorists limits: 100/300
-$100,000 is the maximum amount paid for each injured person
-$300,000 is the maximum amount paid for all injuries and damages resulting from the same accident
For collision and comprehensive (other than collision) coverages:
Deductibles also affect the limit of insurance. Coverages like comprehensive, collision, and uninsured motorists property damage (UMPD) typically offer a choice of deductible amounts, which is the amount you agree to pay before your insurance company pays additional costs. For example, if it costs $2,500 to fix your car and you chose a $1,000 deductible, you would pay $1,000 and your insurance company would pay $1,500.
Keep these limits in mind when purchasing auto insurance and review the limits again when there are changes, like a new driver in the household, you sell or buy a car, or move. To find out which limits are on your auto policy, check your auto insurance ID card, look at your auto policy declarations page, or contact your professional insurance agent.
An insurance company that cares about you and insuring the things you wish to be insured.Get a Quote> Find an Agent>