insurance

Understanding these numbers 15/30/15 in auto insurance policy

You may have seen numbers like this 15/30/15 or 25/75/30 on your auto insurance policy and may have wondered what these numbers mean. The numbers mean the limits of your auto insurance liability.

The auto insurance liability limit is the minimum requirement of liability coverage you are required to carry to qualify to drive in a particular state. Usually, these limits differ from state to state. Your state limit might be lower than the neighbouring state, that’s why if you’re contemplating driving to any state outside where you currently drive, make sure you know what the liability limit says. This will protect you from violating that state traffic laws, save you unnecessary embarassment and penalties that may affect your subsequent auto insurance policy.

The auto liability coverage is classified into three namely bodily injury per individual, bodily injury per accident and property damage. This is the reason why you have the numbers 15/30/15. The first number “15” represents the dollar amount your insurance pays for claim for injury caused to a person. That means when you injure one person in an accident, the company pays $15,000 as claim. The second number, “30′ represents $30,000 as maximum claim for injuries you caused to more than one person in an accident. The third number ‘15′ represents $15,000 for maximum claim for damaging someone else property in an accident.

If you go through your car insurance and see such number you should be able to know what level of liability coverage you have.

One important thing you should know is that peradventure the cost of the injuries or property damage exceeds the amount on your policy; you will have to settle the difference out of your pocket. Take for instance, if your bodily injury limit is $15,000 per person and the cost of medical care and bills of an injured person is $18,000, the company will pay $15,000 while you balance the remaining $3,000 to cover for the injury.

In order to be on the safe side, it’s always advisable to increase your liability coverage above the minimum state requirement. This is to ensure you have sufficient coverage to save you from out of pocket expenses and lawsuits arising from such accident. Wherever you live, find out what the limits are to protect yourself.

Now, if you are considering where to get the cheapest auto insurance policy, you have to rely on the internet. Look for a reliable quote comparison site and compare auto insurance quotes from top rated companies in your area. This is the best way to start and save.

I believe you’ve found this article very useful.