If you’ve read your declarations page before you might have read the word Liability before, but you might be asking what does that mean. From what I learned from insurance classes, liability limits are the legal obligation to pay. That may still not be much help but that’s exactly what it means. Lets say you get into an accident and you look at your liability limits. If you get sued by another party, that is the limit the insurance would pay for your law suit. That makes liability a pretty important coverage to have.
If you have a auto insurance policy you are required to have this coverage, which just shows how important this coverage is. This also brings up the minimum of coverage allowed for this. Right now, in Ohio the state minimum is 25/50/25 for liability. This represents the amount insurance would pay per person and per accident. The first number, 25 (stands for 25,000) which is how much insurance would pay for a single individual. The 50 means the company would spend up to 50,000 total for an accident. The last 25 stands for property damage. This means the company would spend 25,000 for damage to a building or vehicle involved.
Of course that sounds like a good amount of coverage, but if you get into an accident you’ll learn all that money disappears very quickly. If you get in a serious accident the 50,000 is not going to be enough to cover all the bodily injury. You can increase your liability limits before an accident but if you have an accident and change your liability limits after, the company will only pay for your liability limits you had at the time of the accident.
There is an option for a combined single limit and that would be the total amount a company would pay for an accident. Lets say you have a combined single limit of 300,000. An example of this would be if someone had liability limits at 100,000 per person and 300,000 per accident and another person had a combined single limit of 300,000. they both had a really bad accident. One person’s total injuries came to 120,000. Under a policy with combined single limit, the whole 120,000 worth of damages would be paid, but under the other policy, it would cover them for 100,000 of damages which would leave them 20,000 worth of damages not being paid. That’s why it is usually a safe idea to get combined single limit.
Of course adding more coverage can increase the cost for insurance. If you are interested, please contact your agent to see what the prices would be for higher coverage or to see what coverage you have on yours. If you’d like to get a quote you can call us at 419-229-3328. Or visit our website at