This post is part two of the blog post that answers the question “How much car insurance is enough?”
Compensation for Harm You Cause Others
Bodily injury liability is the part of your insurance policy that compensates victims for their injury-related expenses when you are at-fault for an accident. Whether you are partially or totally at fault, a victim can pursue you for loss of wages, medical bill reimbursement, and emotional damages. A jury could also impose punitive damages if you were intoxicated at the time of the accident, texting behind the wheel, or exhibiting negligence at the time of the accident.
Wisconsin requires all drivers to maintain at least the minimum bodily injury liability coverage, but these limits are too low to cover large claims. You are responsible for paying any damages more than your coverage limits. That is why having high-limit coverage is essential for protecting your income and assets against a possible lawsuit.
Split Limits vs. Combined Single Limit (CSL)
Your insurer may offer bodily injury liability coverage as either a combined single limit (CSL) or a split limit. Combined single limits appear as a single number on your policy, which indicates the maximum coverage for all victims in an accident. A 300 CSL, for example, will pay up to $300,000 in total damages, whether there is one victim or several.
A split limit appears as two separate numbers on your policy. The first number is the limit the insurer places on each victim, and the second number is the total amount of coverage available per accident. An example of a split limit would be 250/500, in which there would be up to $250,000 bodily injury liability per individual and $500,000 per accident.
Money to Protect You and Your Passengers against Uninsured or Underinsured Drivers
If an uninsured driver injures you, it could take years to recover even part of your expenses – if you recover any at all. Don’t put you and your passenger’s well-being in the hands of negligent drivers. Uninsured motorist protection (UI) allows you to take matters into your own hands with coverage for your injuries if you are the victim of an uninsured driver or a hit-and-run. We also recommend underinsured motorist protection (UIM), which fills in gaps left by at-fault drivers with too little coverage.
Money to Help with the Little Things
Towing and rental car fees aren’t going to break the bank, but they can be an annoying extra expense to shoulder after a collision. At Glass Insurance Center, we offer coverage enhancements that help with all of the ‘loose ends’ surrounding an accident. With towing coverage, rental car reimbursement, and medical payments for you and your passengers, you can relax knowing everything is already handled.
Beyond Car Insurance
As a financial services center, our goal is to provide complete insurance solutions that protect our clients’ income, assets, and long-term wealth. For that reason, liability insurance is one of the most important aspects of a car insurance policy, but even high-limit coverage can fall short of meeting your financial obligations after an at-fault accident. That is why we recommend umbrella insurance to provide supplementation for major claims that exceed the limits on your coverage.
Umbrella insurance is secondary to your primary insurance. It pays extended liability damages beyond the limits of your policy – usually with additional coverage of $1 million or more. Adding this affordable coverage to your insurance portfolio could save you hundreds of thousands or even millions of dollars if you were ever to face a major lawsuit.
For more information about umbrella insurance and to find out how it could preserve and protect your family’s financial future, contact our office today.