Posted by Josh Anish on February 09, 2012 in Consumers
150/300/150, Deductibles: 500/500
Don't know what this means? Don't worry, you're not alone. In fact, car insurance coverage can be very confusing to most consumers so we're here to help de-code what different car insurance coverage numbers mean and how to decide what car insurance limits are right for you.
Here's a quick de-code of the above:
- 150 = $150,000 of Bodily Injury Coverage per Person in an Accident
- 300 = $300,000 of Bodily Injury Coverage for all Persons in an Accident
- 150 = $150,000 of Liability Property Coverage per Accident
- 500 = $500 Comprehensive Deductible
- 500 = $500 Collision Deductible
Still a little lost? We'll go into more detail on each line.
Bodily injury car insurance coverage covers you for damages that you cause in an accident that is deemed to be your fault to other people involved. In other words, this pays for other people's medical bills if you injure them in an accident. There are two limits, one is per person and the other one is a total for all other people (excluding you) involved. The example car insurance coverage above covers a maximum of $150k in medical bill payments per person you injure with a total of $300k per accident you cause.
Property liability coverage is car insurance coverage that pays for the damage that you do to other people's vehicle or property (i.e. their home or business) if you cause an accident.
It's important to note that the above coverage doesn't mean that that the maximum that a court could find you liable for if you cause an accident, it just means that that's the maximum that you're car insurance company will cover. You could still be sued for more if someone's medical bills exceed your car insurance coverage limits.
That's why it's always a good idea to buy the most car insurance coverage (i.e. the highest limits) that you can afford.
That leads us to car insurance deductibles.
In the example car insurance policy above, there's a $500 comprehensive deductible. That means that if your car is stolen, you would be off the hook and your car insurance company would pay the rest of the cost to replace your car (subject to an agreed upon max). The $500 collision deductible is what you would pay if your car were damaged in an accident that you cause. Again, your car insurance would ay the rest.
Not so complicated after all but it can really pay to understand all those numbers. Most people don't fully understand their car insurance coverage until after it's too late.