What are Auto Insurance Liability Limits?
As an insurance agent at Hutsenpiller Insurance in Mt. Juliet, Tennessee, I often hear questions from clients about the liability limits on their auto insurance. Liability coverage is extremely important to have, since it provides protection against claims resulting from accidents you cause. This coverage is required by law in most states, and it’s important to understand what it covers and what the limits are.
Liability coverage can be divided into two parts: bodily injury liability and property damage liability. Bodily injury liability coverage helps pay for medical bills and other costs associated with injuries you cause to another person in an accident. Property damage liability coverage helps pay for damage to another person’s property caused by an accident you’re at fault for.
The limits of your liability coverage refer to the maximum amount of money your insurance company will pay for claims resulting from an accident you cause. These limits are set by your insurer and can vary from state to state. Generally, the minimum lim
its for bodily injury liability coverage are $25,000 per person, $50,000 per accident, and $25,000 for property damage liability.
It’s important to note that these limits are the maximum amount your insurance company will pay, so you may be personally responsible for any costs exceeding these limits. For this reason, it’s important to purchase more than the minimum amount of coverage. That way, if you’re ever involved in an accident that causes more damage than your policy covers, you won’t have to bear the full financial burden.
At Hutsenpiller Insurance, we’re committed to helping our clients find the right auto insurance coverage for their needs. We take the time to explain the various types of coverage and the liability limits associated with them, so our clients can make informed decisions. If you have any questions about the liability limits on your auto insurance, please don’t hesitate to contact us. We’re here to help!