I saw a news article this morning and with the slick roads and current driving conditions I thought this was perfect timing to reach out about car insurance coverage and what that means to you. The first picture is of an accident that happened in Kansas very recently. I normally do not post accident pictures or videos but I thought this was an excellent example. In the accident pictured there were only minor injuries thankfully.
First does anyone know what the numbers on your car insurance represent?
If not hold on here we go. For this post I will focus on property damage as this is the easiest to spot in the pictures. You will usually hear the liability referred to as 25/50/25, 100/300/100, 250/500/250 or some may have heard of CSL or combined single limit.
What do these numbers represent? Keep in mind this is liability i.e. coverage you carry to pay for damage to others.
-25/50/25: $25,000 Each Person Bodily Injury, $50,000 Each Accident Bodily Injury, $25,000 Property Damage
- 100/300/100: $100,000 Each Person Bodily Injury, $300,000 Each Accident Bodily Injury, $100,000 Property Damage.
-250/500/250: $250,000 Each Person Bodily Injury, $500,000 Each Accident Bodily Injury, $250,000 Property Damage
How much do you think it will cost to repair the building? What about the lost income while the building is being fixed? Or the injury to the customer?
Would 25/50/25 be enough to cover this claim and if not where will the extra money come from?
The extra money will come out of your pocket through garnishments or other legal remedies. Keep in mind if your child is on your policy and has an accident YOU, THE PARENT, THE OWNER OF THE POLICY will be financially responsible if your insurance coverage is too low.
I am not trying to scare anyone into buying insurance. I just want to educate and remind everyone that the numbers on your policy do have a real world meaning and can have serious financial impact. A simple fix is to review your car insurance coverage limits and talk to your insurance agent.