The most important coverage on your auto insurance is your liability limits.
It determines how much coverage you have if you are in an at fault accident and are sued by the other driver, it determines how much the insurance company will pay to cover the other persons vehicle, and it determines your future premium if you ever move to another carrier.
Typical liability limits (per person/bodily injury per accident/property damage)
– 25/50/25 (This is the state minimum)
– 50/100/50
– 100/300/100
– 250/500/250
– 500/500/250
Example: If you have 25/50/25 limits and you rear end someone and total their $75k vehicle, the insurance company will pay $25k and you will be out of pocket $50k. If that person sues you for damages in the amount of $50k, the insurance company will pay $25k and you will be out of pocket $25k.
We always recommend carrying at least 100/300/100 liability limits for this reason.
Also, let’s say you currently carry 25/50/25 limits and you want us to move you to a new carrier. Hypothetically, let’s say the rate we pull for you on the new carrier is $1200 a year. If I go in that quote and change your limits from 25/50/25 to 100/300/100, that same quote will go down $2-300. The insurance carriers see a value in customers who carry higher limits.