5 Essential Insurance Coverages: Higher Auto Liability Limits

5 Essential Insurance Coverages: Higher Auto Liability Limits

Sep 10 2019

5 Essential Insurance Coverages: Higher Auto Liability Limits

What are Auto Liability limits?

Liability coverage pays for bodily injury or property damage you become responsible for as a result of a car accident/incident. Liability limits are usually shown as three numbers, referring to the most your insurer will pay for an accident you cause. A common policy structure is 250/500/100, which covers up to:

  • 250 = Bodily Injury Coverage — $250,000 for injuries per person
  • 500 = Overall Maximum Coverage — $500,000 for injuries total per accident
  • 100 = Property Damage Coverage — $100,000 for property damage per accident

Your auto policy’s liability coverage generally does not pay to repair your own property if you cause an accident, nor does it pay to treat your injuries or the members of your household if you cause an accident. 

What is the advantage of having higher Auto Liability limits?

The amount of liability coverage you carry should be high enough to protect your assets in the event of an accident. Most experts recommend that you carry as much liability coverage as you can comfortably afford – but we recommend no home owner should have limits under 100/300 While having higher Auto Liability limits will cost more in your auto insurance premium, they are worth protecting your assets in case of a larger accident with multiple vehicles. 

Imagine This Scenario

Ms. Whitney carries 50/100/50 for Liability coverage. One day, she hits black ice on the Mass Pike and spins out. This results in a multi-vehicle accident that ultimately totals five cars, one of which happens to be an $85,000 Tesla. In total, the incident does $142,000 of property damage. Ms. Whitney is personally responsible for the $92,000 remaining after her maximum coverage of $50,000 pays out. 

Request an Auto Quote or make changes to your current coverage

Do you have the right insurance coverage to get you through all of life’s ups and downs? At Bearingstar Insurance, we know that you’ve worked hard for all that you’ve accomplished, and are here to make sure it’s all protected. With offices throughout Massachusetts and Connecticut, it’s easy to find a local agent to help with your insurance needs!



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