19659005] You often see car insurance liability limits written as follows: 25/50/20 or $ 25,000 / $ 50,000 / $ 20,000.
Here is a more detailed look at these limitations of liability:
- $ 25,000 liability per person
- $ 50,000 bodily injury per accident
- $ 20,000 property damage per accident
With these liability limitations, the insurance would pay up to $ 25,000 if you cause an accident where a single person is injured (with some exceptions, depending on the policy). Insurance would pay up to $ 50,000 in an accident that caused where more than one person was injured and the coverage would cover up to $ 20,000 of property damage.
Lower Liability Limits = Higher Financial Risk
When you think of your car insurance liability limits, consider how much you want to prepare for worst-case scenarios. You pay for damages with your own money when you do not have enough coverage.
In another blog post, we discuss the main reasons for car insurance that is increasing :
] That is the same reason why you should reconsider low liability limits. With the policy of 25/50/20 we show you why cheaper is not always better when it comes to car insurance.
- The average new car costs about $ 35,000 . A $ 20,000 damages limit will probably not cover the costs if you cause an accident summarizing another driver's new vehicle.
- In 2010, National Highway Traffic Safety Administration (NHTSA) estimated that average auto-mortality costs an average of $ 1.4 million over a lifetime and a critical accident from a car accident costs on average $ 1 million. over a lifetime. As we mentioned, the cost of healthcare services has increased by 12% since 2012, and low injuries were not limited to covering these amounts.
Unfortunately, we see claims where new vehicles become total, drivers and passengers hold serious damage and life is lost.
Are you distracted?
Are you thinking of yourself as a careful driver who takes all precautions to avoid accidents? You can use this as a justification for having low car insurance liability limits.