Understanding Common Auto Insurance Coverage Limits

The amounts insurance companies pay for a claim will vary based on the damage and the limits under your current policy. Before making a decision, it’s best to learn how the options suit your finances, vehicle, and the drivers within your household. Below are common auto insurance limits and ways to select the best options.

Bodily Injury

The most common limit for bodily injury liability coverage is $25,000. However, this is per person. The claim limit for bodily injury covering the entire accident is generally up to $50,000. This is typically the average, but you can increase this amount based on your budget, finances, property type, and other factors.

Because injuries can lead to costs higher than most types of property damage, the claim limits for bodily injury liability coverage are often the most important. It should be higher than your net worth. Always speak with a car insurance provider about the limit structures to ensure you make a selection that can fully pay for medical bills and other expenses.

Property Damage Liabilities

The per-accident limit will vary based on what’s stated in your current policy. However, if you cause another accident during your agreed-upon term, the property damage policy should pay the claim limit amount again, as long as requirements are met.

During the selection process, you must consider what you have the potential to lose after an accident. For example, if you have a $30,000 property damage claim limit but your net worth is higher than that, you could put yourself at risk.

Most providers require you to obtain a $30,000 minimum and $60,000 per accident. When working with an auto insurance company, learn more about coverage availabilities and how each could impact the drivers throughout your household.

Additional Insurance Options

Limited liability coverage generally applies to damages and injuries that you cause. In the state of California, this type of policy is a requirement. However, you can purchase the additional insurance options mentioned below to obtain higher claim maximums.

If your budget permits you to select comprehensive coverage, speak with your insurance provider about its limits. When leasing or financing an automobile, your lender may require this coverage type. Comprehensive coverage also covers damage to your vehicle caused by events out of your control.

Another popular option is collision coverage. This policy could cover damage done to your automobile by other drivers or repairs and replacements that are necessary due to objects your vehicle may hit.

Adjustments

Most insurance providers allow clients to change their auto insurance coverage, but this will vary. Regardless, you can reach out to explain your situation. Your provider will likely need you to gather information, whether it’s medical records, images, or estimates regarding auto repairs and replacements.

Remaining honest and providing the necessary details could allow your adjustment request to be approved. The objective is for insurance providers to understand the damages and how your initial offer is no longer the best option. Ultimately, you want to ensure the maximum payout for a claim.

Although updates and adjustments could occur, it’s always best to know as much about the policy as possible, especially its limits. A trustworthy insurance company will provide these details and take the time to go over the policy thoroughly, allowing you to ask questions or make changes before accepting the terms.

Drivers who are searching for reliable, affordable auto insurance should reach out to the experienced professionals at Altra Insurance Services. In addition to auto coverage, we offer a variety of insurance policies, including motorcycle, homeowners, and business insurance. San Diego residents can call one of our friendly agents today for a free quote.