This post is part two of the blog post that answers the question “How much car insurance is enough?”
Money for Harm You Cause Others
If you are at fault for a collision, you are responsible for injuries to the victims of that accident. Whether another driver or a pedestrian, you can be sued for compensation of damages, which may include the cost of current and future medical bills, as well as lost wages and emotional distress. If you exhibited extreme negligence, such as driving while texting or intoxicated, you might also have to pay punitive damages. Bodily injury liability insurance can cover these costs, but only up to the limits you select for your policy. Any damages beyond those limits are yours to pay out-of-pocket and could total hundreds of thousands of dollars to be recovered from your savings, assets, or future income.
Bodily Injury Liability Coverage Options
Insurers offer bodily injury liability coverage in two different ways. The first, known as a split limit, is expressed as two different numbers separated by a forward slash (i.e. 25/50 or 250/500). The first number is the coverage available per person in an accident, and the second is the total available bodily injury coverage for all injured victims in an accident. The other type of cover is known as combined single limit (CSL); this is the total amount of liability coverage available for injured victims in an accident with no separate limits for individual victims.
How Much Coverage Do You Need?
Here in Wisconsin, bodily injury liability coverage is mandatory by law, but the minimum limits required by the state come nowhere close to protecting you in a serious accident. Currently, drivers are required to have at least a 25/50 split, although we recommend much more coverage to minimize your financial vulnerability. Our team here at Feivor Insurance can help you determine how much bodily injury liability protection you might need for your individual needs.
Money to Protect You and Your Passengers against Uninsured or Underinsured Drivers
Some things are outside your control. Just as you cannot prevent someone from hitting your car, you also cannot control how much car insurance an at-fault driver will have to cover your injuries. Uninsured motorist (UI) and underinsured motorist (UIM) protections can provide peace of mind knowing that you and your passengers will be covered if a driver hits you with too little insurance or no insurance at all. It is perhaps the most important coverage on your policy since it guarantees you and your passengers’ needs will be met even if the responsible party is unable to pay.
Money to Help with the Smaller Things
An accident can affect your pocketbook in more ways than one. There are towing charges, the cost of a rental car, and possibly even an expensive health insurance deductible if you require medical care. Here at Feivor Insurance, we can personalize your car insurance policy to fit your individual needs and minimize your out-of-pocket expenses. From towing and rental car coverage to medical payments protection that covers you regardless of who is at-fault, we offer several types of coverage to reduce your financial burden after an accident.
Beyond Car Insurance
Sometimes even high-limit liability coverage is not enough to protect you against an extreme situation. If you cause an accident that permanently disables the breadwinner of a family, compensatory damages could total a million dollars or more – an amount that far exceeds even the highest available liability coverage. Here at Feivor Insurance, we urge drivers to strongly consider supplementing their liability coverage with an umbrella policy that extends primary liability by $1 million or more. The coverage is very affordable, and it could mean the difference between financial security and ruin. For help determining if umbrella insurance might be right for you, contact our office today.