ArtsAutosBooksBusinessEducationEntertainmentFamilyFashionFoodGamesGenderHealthHolidaysHomeHubPagesPersonal FinancePetsPoliticsReligionSportsTechnologyTravel

Car Insurance Limits: What Do They Mean?

Updated on September 19, 2016
This is not the time to find out your coverage limits
This is not the time to find out your coverage limits | Source

Often when I have talked with people about car insurance it seems like they have no clue what the limits of their policy are, or they just say I have full coverage so I don't have limits. Every policy has limits so it would be in your best interest understand them. This article will try and educate readers about the limits on their car insurance, and how important they are.

Limits

If you want to see what your limits are you need to look at the deceleration page of your policy. Basically its a summary page and is usually available online for most major insurance companies. Your limits will look something like this

  • BI (Bodily Injury) 25,000/50,000

  • PD (Property Damage) 50,000

  • UMBD (Uninsured Motorist Bodily Injury) 25,000/50000

  • UMPD (Uninsured Motorist Property Damage) 50,000

  • Comprehensive 500

  • Collision 500

There are other things that may be included as well, such as rental car, or any other feature than you have on your policy.

The bodily injury category means that if you are at fault for an accident, the policy will pay up to $25,000 per person for medical bills, pain and suffering etc. Up to $50,000 per accident.

The property damage category means the policy will pay up to $50,000 for any property damage you caused. This would include damage to the other persons car, if you hit a guard rail, crashed into a building etc.

The uninsured motorist bodily injury is designed to protect you the policy owner. If you are hit by someone who has no insurance, or if the person fled from the accident then this coverage would pay for your and your passenger's injuries

The uninsured motorist property damage is the same as the uninsured motorist bodily injury, but it covers any property damage by the uninsured motorist.

Comprehensive coverage covers your car from things like hail, vandalism, theft, flood, or the most popular collision with an animal. The $500 is called your deductible, meaning when a comprehensive claim is filed you pay the first $500 and the insurance company pays the rest.

Collision works the same what they comprehensive does meaning you pay the deductible first then the insurance company pays the rest. But collision is what pays for your car to be fixed in an accident where you are at fault.

What is at risk

The limits of your insurance is one of the main factors in determining the rate you pay so many people are hesitant about raising the limits of their policy. But many people do not understand what is at risk if an accident goes over their limits and they can't pay the rest. The available actions vary by state but most often they will seize your checking and savings accounts first, then go to investments, 401k, college savings plans, stocks, bonds etc. If all of that isn't enough they can start claiming your personal property, your house, car, any expensive collections you have and auction them off. And lastly they can garnish your wages up to 25% if necessary.

Determining your limits

May people ask how they should go about determining what limits they should have on their policy. The best thing to do is research for your area. Look online for car accident data for your area, such as the number of accidents per year, the average cost of an accident, the average cost of cars in your area. You can also contact a local insurance agent for relevant information, but they will most likely try and convince you that your limits need to be higher.

Comments

    0 of 8192 characters used
    Post Comment

    No comments yet.

    working

    This website uses cookies

    As a user in the EEA, your approval is needed on a few things. To provide a better website experience, hubpages.com uses cookies (and other similar technologies) and may collect, process, and share personal data. Please choose which areas of our service you consent to our doing so.

    For more information on managing or withdrawing consents and how we handle data, visit our Privacy Policy at: "https://hubpages.com/privacy-policy#gdpr"

    Show Details
    Necessary
    HubPages Device IDThis is used to identify particular browsers or devices when the access the service, and is used for security reasons.
    LoginThis is necessary to sign in to the HubPages Service.
    Google RecaptchaThis is used to prevent bots and spam. (Privacy Policy)
    AkismetThis is used to detect comment spam. (Privacy Policy)
    HubPages Google AnalyticsThis is used to provide data on traffic to our website, all personally identifyable data is anonymized. (Privacy Policy)
    HubPages Traffic PixelThis is used to collect data on traffic to articles and other pages on our site. Unless you are signed in to a HubPages account, all personally identifiable information is anonymized.
    Amazon Web ServicesThis is a cloud services platform that we used to host our service. (Privacy Policy)
    CloudflareThis is a cloud CDN service that we use to efficiently deliver files required for our service to operate such as javascript, cascading style sheets, images, and videos. (Privacy Policy)
    Google Hosted LibrariesJavascript software libraries such as jQuery are loaded at endpoints on the googleapis.com or gstatic.com domains, for performance and efficiency reasons. (Privacy Policy)
    Features
    Google Custom SearchThis is feature allows you to search the site. (Privacy Policy)
    Google MapsSome articles have Google Maps embedded in them. (Privacy Policy)
    Google ChartsThis is used to display charts and graphs on articles and the author center. (Privacy Policy)
    Google AdSense Host APIThis service allows you to sign up for or associate a Google AdSense account with HubPages, so that you can earn money from ads on your articles. No data is shared unless you engage with this feature. (Privacy Policy)
    Google YouTubeSome articles have YouTube videos embedded in them. (Privacy Policy)
    VimeoSome articles have Vimeo videos embedded in them. (Privacy Policy)
    PaypalThis is used for a registered author who enrolls in the HubPages Earnings program and requests to be paid via PayPal. No data is shared with Paypal unless you engage with this feature. (Privacy Policy)
    Facebook LoginYou can use this to streamline signing up for, or signing in to your Hubpages account. No data is shared with Facebook unless you engage with this feature. (Privacy Policy)
    MavenThis supports the Maven widget and search functionality. (Privacy Policy)
    Marketing
    Google AdSenseThis is an ad network. (Privacy Policy)
    Google DoubleClickGoogle provides ad serving technology and runs an ad network. (Privacy Policy)
    Index ExchangeThis is an ad network. (Privacy Policy)
    SovrnThis is an ad network. (Privacy Policy)
    Facebook AdsThis is an ad network. (Privacy Policy)
    Amazon Unified Ad MarketplaceThis is an ad network. (Privacy Policy)
    AppNexusThis is an ad network. (Privacy Policy)
    OpenxThis is an ad network. (Privacy Policy)
    Rubicon ProjectThis is an ad network. (Privacy Policy)
    TripleLiftThis is an ad network. (Privacy Policy)
    Say MediaWe partner with Say Media to deliver ad campaigns on our sites. (Privacy Policy)
    Remarketing PixelsWe may use remarketing pixels from advertising networks such as Google AdWords, Bing Ads, and Facebook in order to advertise the HubPages Service to people that have visited our sites.
    Conversion Tracking PixelsWe may use conversion tracking pixels from advertising networks such as Google AdWords, Bing Ads, and Facebook in order to identify when an advertisement has successfully resulted in the desired action, such as signing up for the HubPages Service or publishing an article on the HubPages Service.
    Statistics
    Author Google AnalyticsThis is used to provide traffic data and reports to the authors of articles on the HubPages Service. (Privacy Policy)
    ComscoreComScore is a media measurement and analytics company providing marketing data and analytics to enterprises, media and advertising agencies, and publishers. Non-consent will result in ComScore only processing obfuscated personal data. (Privacy Policy)
    Amazon Tracking PixelSome articles display amazon products as part of the Amazon Affiliate program, this pixel provides traffic statistics for those products (Privacy Policy)