| |
The Importance of Liability Limits
Take a look at your Mass Auto Coverage Selections (or Declarations) page. This document displays the most important information regarding the coverage available to you after an automobile accident. The layout of your coverage page may vary from one carrier to another, but they all contain the same 12 coverage categories. Look specifically at parts 1, 3, 5 and 12 of your policy; these are your liability coverage limits.
Liability coverage pays for the expenses incurred due to bodily injury or death during an auto accident. In Massachusetts, the minimum amount of liability coverage available is $20,000 per person/ $40,000 per accident.
- Part 1 provides coverage for bodily injury to others and is mandatory for all Mass auto policies. This coverage is set at $20,000/$40,000 and can not be altered.
- Part 3 provides coverage for bodily injury caused by an uninsured auto. This amount can be increased from the minimum $20,000/$40,000 limit up to $500,000/$1,000,000 with company approval. In most cases, the increase in premium from one coverage level to the next is only a few dollars a month.
- Part 5 also provides coverage for bodily injury to others, but in addition to the mandatory Part 1 bodily injury to others, this part will include coverage for guest occupants and for accidents occurring outside of Massachusetts. The limits shown under this part are the total limits you have for bodily injury to others. They are not in addition to your Part 1 limits. This coverage can also be increased for a minimal change in premium.
- Part 12 provides coverage for bodily injury caused by an underinsured auto. This amount can be increased from the minimum $20,000/$40,000 limit up to $500,000/$1,000,000 with company approval.
In today’s economy most people are simply looking for the cheapest policy, without regard to the limits of coverage that it provides. So we invite you to take a minute to review your coverage page and ask yourself, “Am I paying for something that may not adequately cover my expenses in the event of an accident? Will $20,000 be enough to pay for bodily injuries where the worst possible scenario may occur?” If the difference between minimal and adequate coverage is less than $100 per year, wouldn’t you rather be sure that money won’t be coming out of your own pocket after an accident? For more information regarding this and other insurance questions, please feel free to contact our office.
|
|
