5 Essential Insurance Coverages: Higher Auto Liability Limits | Bearingstar (2024)

FAQs

What are the 2 types of liability coverage included in most auto insurance policies? ›

It's important to note there are two types of liability coverage: bodily injury and property damage.

Home or property insurance, life insurance, disability insurance, health insurance, and automobile insurance are five types that everyone should have.

Four types of insurance that most financial experts recommend include life, health, auto, and long-term disability.

The most important ones are liability, comprehensive and collision coverage. We call them the big three of basic car insurance—coverage you can't afford to go without.

I've explained that Auto Liability pays out when you hit someone or something with your vehicle, and that General Liability does not. Period. To give them a better picture of what General Liability does cover, here are some examples I use: Customers slipping and falling on your premises.

Liability insurance: Almost all states require a minimum amount of liability insurance. This coverage helps pay for any injuries or damages you cause in a car accident, including those of the other driver and their passengers.

A limitation of liability clause, if found to be enforceable, can “cap” the number of potential damages incurred. The liability cap may be applied to all claims that arise during the term of the agreement, or it might be restricted to specific claims.

You can check with your state's department of insurance or department of motor vehicles to understand what's required. That said, insurance experts recommend at least $100,000 per person and $300,000 per accident for bodily injuries, and $100,000 for property damage, or 100/300/100.

If you carry auto insurance with liability coverage limits of $50,000/$100,000/$30,000, those numbers are broken down as follows: $50,000: The maximum amount your insurer will pay for bodily injuries per person. $100,000: The total amount your insurer will pay for bodily injuries per accident.

The five basic types of car insurance are liability insurance, collision coverage, comprehensive insurance, uninsured motorist coverage and either medical payments coverage or personal injury protection.

What are the four levels of coverage? ›

Plans in the Marketplace are presented in 4 health plan categories: Bronze, Silver, Gold, and Platinum. (“Catastrophic” plans are also available to some people.) Health plan categories are based on how you and your plan split the costs of your health care.

The best way to protect yourself financially is to opt for the highest liability coverage. The most common liability coverage is 100/300/100, which is $100,000 per person, $300,000 per accident in bodily injury liability and $100,000 per accident in property damage liability.

A policy with 25/50/10 limits means your insurance will pay up to $25,000 for bodily injuries per person, up to $50,000 for bodily injuries per accident, and up to $10,000 for property damage per accident. You, the policyholder, must pay for any damage beyond these limits, so it's important to have sufficient coverage.

Although there are many insurance policy types, some of the most common are life, health, homeowners, and auto. The right type of insurance for you will depend on your goals and financial situation. Consumer Financial Protection Bureau.

Full coverage car insurance is protection that includes collision, comprehensive, and liability coverage. Often, you can supplement your insurance with uninsured motorist coverage, personal injury protection, medical payments, gap insurance, and other coverage options.