When was the last time you looked at your automobile insurance declaration page?
You have reviewed it right? Do you know what your auto insurance policy covers and for how much? It may be time to take a look to make sure you have enough coverage – or to refresh your memory. Requirements of the type of coverage and amount of coverage differ in every state. You can check with Policy Genius for the particulars about your state. Policy Genius has detailed information about coverage and objective ratings for insurance companies. Regardless of the legal requirements in your state, you need to have automobile inusrance in order to secure your financial well-being, ensure peace of mind, and protect others on the road.
I have been a long-time customer of State Farm for auto insurance. The have been great over the past 20 plus years. My parents have been long-time customers of USAA and have been happy with USAA as well. If you want to get a better idea of what insurance companies are offering and/or want to see if you can get a better deal than you currently have, I suggest using The Zebra. I tried it the other day and was amazed how quick and easy it was to use. FYI: I did not change my auto insurer.
Let’s take a quick look at the most basic information you should be aware of in relation to your auto insurance. We will use a 15/30/5 as an example. A 15/30/5 auto insurance policy is a specific type of liability coverage that defines the maximum amounts (in thousands of dollars) the insurance will pay in the event of an accident. Let’s break it down:
- $15,000 per person: This is the maximum amount the insurance will pay for injuries sustained by one person in the other party involved in the accident.
- $30,000 per accident: This is the total maximum amount the insurance will pay for all injuries if there are multiple people injured in the other party.
- $5,000 for property damage: This is the maximum amount the insurance will pay for damage to the property of others, such as the other person’s car or other structures damaged in the accident.
So, if you have a 15/30/5 policy:
- It covers up to $15,000 for one person’s injuries.
- It covers up to $30,000 for all injuries in a single accident (if multiple people are injured).
- It covers up to $5,000 for property damage.
These numbers represent the limits of your coverage, and it’s important to choose coverage that adequately protects you in case of an accident.
Now, let’s look at two other policies with higher limits:
- 50/100 Policy:
- $50,000 per person
- $100,000 per accident
With this policy, you’d have more coverage for individual injuries ($50,000), and the total coverage for all injuries in one accident would be $100,000. No property damage coverage.
- 100/300 Policy:
- $100,000 per person
- $300,000 per accident
This policy offers even higher coverage. It would cover up to $100,000 for injuries to one person and up to $300,000 for all injuries in a single accident. No property damage coverage.
In essence, the higher the second number in the ratio, the more coverage you have in case of an accident. It’s essential to choose coverage limits that align with your financial situation and potential liabilities.