It is important to choose the right Car Insurance Policy when purchasing Direct Auto Insurance online. It is important to know what Liability Insurance is when you purchase Car Insurance. Liability Insurance protects you from being sued by the other person. These days, there are many companies that sell “Cheap Car Insurance” and “low-cost auto insurance”. They have to cut costs somewhere.
Direct auto insurance can offer many different liability limits. But what does this all mean? 25/50/ 10, 100/300/100, or perhaps 25/50/10. You might also consider a CSL (Combined Single Limit), of $500,000. Don’t be surprised if this seems all Greek to your ears.
Okay, so you want to find the cheapest car insurance and are looking at all these options. But what does this all mean? Okay, so the first example of 25/50/10 is the Liability Limit for car insurance. The 25 is the first number. It stands for $25,000 per individual. This means that if you are involved in an accident that results in injury or death, your insurance company will pay $25,000 to the family member who was injured or killed. The next number, 50, stands for $50,000 per incident. This is how much your auto insurance company will pay for your accident.
Let’s take, for example, a car accident in which 3 people are involved in serious injury. Now you might think that $25,000 is enough for each person. However, the second $50,000 is the limit on the total car accident claim. This is the bodily injury portion.
The 10 is the final number and represents a $10,000 property loss limit. This is a crucial point to remember when purchasing direct auto insurance online, or through an agent. When I refer to property damage, I don’t mean your vehicle. This is not for your car, his garage, mailbox, or any other damage you may have caused. A $10,000 car is not much with today’s prices. What happens if you damage his SUV or Mercedes?
The CSL, or Combined Single Limit policy, is another type of Liability insurance limit you may be able to purchase in your state for your car insurance liability limits. A CSL policy removes individual liability limits. This means that it will only pay the maximum amount of whatever limit it has. This means that if you have a $300,000.00 CSL on your auto policy, it will pay the maximum amount.
When shopping for car insurance, consider raising these limits while still keeping your monthly car insurance cost within your budget. Some of the better limits might be $300,000/300,000/ 300,000 or maybe even $500,000/$500,000/$500,000. This is not a recommendation to your personal insurance coverage. Only your attorney or insurance agent can advise you.
When you go to your local auto insurance company for a quote, consider increasing your liability limits or raising your deductibles. You can get the best car insurance possible, but you won’t be able to afford it.
