What are Typical Auto Insurance Limits?

When consumers think of typical auto insurance limits, they may be focused on the minimum level of coverage required under state law. This level of coverage may be an economical choice, but that doesn’t mean it will adequately protect a driver if he or she is involved in a serious accident. The insurance company will pay out on liability claims, but only up to the limit the policyholder has chosen. If the level of damages caused in the accident is higher than the available coverage, the driver who is determined to be responsible for the accident must pay the difference personally. In the case of an accident which causes permanent injuries, this figure can be significant.

Rather than run the risk of having to sell off hard-earned assets to pay for damages caused in an accident, a much better choice is to consider buying a policy with limits similar to the following:

  • Bodily injury coverage of $100,000 to pay for injuries and damages suffered by a single person in an accident
  • $300,000 to pay for injuries and damages sustained by all people injured in the same accident
  • Property damage coverage of $100,000 to pay for repairs to the other driver’s vehicle and public property damaged or destroyed in an accident

Liability auto insurance coverage will also pay for the cost of defending a lawsuit brought by the occupants of the other vehicle in an at-fault accident.