The main reason we send this newsletter is to add value to our customer’s relationship with us. One way we can do this is to help you be better informed about your insurance policies and terms.
A typical auto insurance policy is a 100/300/100. This is a split liability coverage policy.
The first number, 100, is the amount of coverage per person in an accident. In the example above it means $100,000. The second number represents the liability coverage limit for all liability for an accident. The last number is the limit of coverage for property damage.
So, in our example above, let’s say you were driving with three people in the car and, while you were texting, you crashed into the Metropolitan Museum of Art. Everyone needed to go to the hospital and you destroyed twelve priceless Faberge eggs in the Museum’s collection. Your coverage would provide up to $100,000 per passenger for medical expenses (the first number – 100 = $100,000) except you maxed out at $300,000 for total coverage (the second number, 300) and the museum would send you a bill for $15,900,000 to cover the art since the policy covers $100,000 in property damage (the third number, 100).
We called this coverage ‘typical’ because there are alternatives. Another type of coverage is called 300 CSL “single limit coverage”. We recommend this type to our customers because it offers $300,000 total aggregate coverage for an accident but triples the coverage for the person category (the first number in our 100/300/100 coverage). There is also 500CSL and umbrella coverage that really boosts your protection at a very affordable price
It usually costs very little to change your coverage to this type. Interested in knowing more or have any questions? Give us a call.
