Ok so I have 25/50, $25k per person and $50k per accident.
I see people talk about having 300k/500k. What am I missing here? Do I just carry way less coverage than normal? I don’t see those numbers when I’m creating quotes.
Help me understand bodily injury limits
byu/ThrowRA_6784 inInsurance
Posted by ThrowRA_6784
6 Comments
If people own a house they should be at 300 at least is what I’m told. Kinda depends on how many assets you own.
The reason why people carry liability limits above the legal minimum is because the legal minimums are really low. Any major medical cost as a result of an accident can easily blow through the minimum coverage limits. Consider a scenario where you put someone in the hospital who also has high compensation package from their employer. Your liability limits would need to be high enough to cover the hospital bill and potentially their loss of income.
If you’re unable to get quoted for higher limits, I recommend reaching out to a licensed insurance agent. They should be able to pull quotes for you with different coverage limits.
Yes you carry the state minimum. If you rear-end a new car, your policy won’t cover any damages exceeding $25k and you are responsible for the rest. Same with injuries
If you injure or kill others with your car, this is all that your insurance is contractually obligated to pay on your behalf. Quote: 250/500 or better 500 CSL plus an 1 or 2M Umbrella if you have kids or risks.
As it is now, you practically have no coverage and are exposed personally to excess expenses.
$300/$500k is really popular with older and wealthier people because 1) they’re more likely to cause an accident compared to the general population and 2) more assets (home, savings) that could be lost if financially liable.
It’s very unlikely you will cause $500,000 of damage in a single accident unless you cause a ten tesla pileup and everybody died.
I’d recommend maybe 50/100 in the rare case you cause a serious accident, just to be safe.
>I don’t see those numbers when I’m creating quotes.
You should definitely ask your agent about that. On a side note, you will likely find that increasing your limits is much cheaper than you thought. Shop around with an independent broker.