Sunday, January 24th, 2016
What do all those numbers and letters on my car insurance policy mean? bi/pd 50/100/50?
The first number is the maximum amount the insurance company will pay out for bodily injury, per person, per accident. This is when an accident is your fault, and the person(s) you hit has bodily injury. The middle number is the maximum the insurance company will pay out for any one incident. The last number is the maximum the insurance company will pay for property damage (caused by you.)
Many people are driving with their state's minimum limits. What you don't know is that these limits were set when cars cost under $5,000. Some states still carry $5,000 as their state minimum for property damage. In Virginia, our state minimum limits are 25/50/20.
I had a client who was in an accident on I-95 awhile back. There wasn't much traffic on the road at the time, he was merging right because his exit was coming up. He looked, but didn't see a car beside him in his blind spot. He hit the Jaguar beside him and totaled it. The insurance company paid out $92,000 for that Jaguar. If you were to have that accident today, would your current policy cover the $92,000? If you have the Virginia state minimum limits, they'd pay $20,000 and the other $72,000 would be on you. You can be taken to court, you can have liens put against property you own and have your wages garnished to pay this.
There are far too many cars on the road today worth more than $5,000, $15,000, and even $20,000. Don't get caught with state minimum limits when the cost to get higher limits is so insignificant compared to the cost of paying that $72,000. Get a quote today and see for yourself. You might even find that you can get higher limits for lower premium.
Contact me for quotes or find an independent broker in your area. There's no time like the present to make sure you and your family are protected!
MW
Copyright 2016
What do all those numbers and letters on my car insurance policy mean? bi/pd 50/100/50?
The first number is the maximum amount the insurance company will pay out for bodily injury, per person, per accident. This is when an accident is your fault, and the person(s) you hit has bodily injury. The middle number is the maximum the insurance company will pay out for any one incident. The last number is the maximum the insurance company will pay for property damage (caused by you.)
Many people are driving with their state's minimum limits. What you don't know is that these limits were set when cars cost under $5,000. Some states still carry $5,000 as their state minimum for property damage. In Virginia, our state minimum limits are 25/50/20.
I had a client who was in an accident on I-95 awhile back. There wasn't much traffic on the road at the time, he was merging right because his exit was coming up. He looked, but didn't see a car beside him in his blind spot. He hit the Jaguar beside him and totaled it. The insurance company paid out $92,000 for that Jaguar. If you were to have that accident today, would your current policy cover the $92,000? If you have the Virginia state minimum limits, they'd pay $20,000 and the other $72,000 would be on you. You can be taken to court, you can have liens put against property you own and have your wages garnished to pay this.
There are far too many cars on the road today worth more than $5,000, $15,000, and even $20,000. Don't get caught with state minimum limits when the cost to get higher limits is so insignificant compared to the cost of paying that $72,000. Get a quote today and see for yourself. You might even find that you can get higher limits for lower premium.
Contact me for quotes or find an independent broker in your area. There's no time like the present to make sure you and your family are protected!
MW
Copyright 2016
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