I hope this finds everyone well. Thankfully the storm has left our area with no real effects on SW Florida which is GREAT news.
So, while homeowners insurance is always a hot topic when the subject of insurance arises often we overlook the importance of reviewing our auto insurance. Most of us will never be subject to a lawsuit because of our home ownership, like a slip and fall, but many of us can and will be sued because of a traffic accident. I AM NOT A LAWYER NOR DO I PLAY ON ON TV, and for legan advise always seek a qualified attorney, but it is no secrete that our society has become much more litigious and we need to protect ourselves.
In the next few blog posts, I will seek to explain in general terms the coverages of an auto insurance policy and how they interact at the time of an accident. The first part that I would like to discuss is the liability portion of your policy. There are 2 types of liability on a typical auto insurance policy bodily injury liability and property damage liability. If you were to look on your auto insurance policy declarations page you may see something like BIPD 250/500/100 or 500CSL. These are your policy limits, meaning the maximum that the carrier will pay in the event of a claim. So in the first example.... the 250/500 part refers to the bodily injury portion of the policy. If you get into an accident and YOU are at fault and hurt other people. This pays for their medical expenses. The limit means a maximum of $250000.00 per person in the car and a maximum of $500000.00 for all injured persons in the incident. The last number 100 is the property damage liability limit. In this accident where you are at fault, this pays for the damage of the property that you damaged (their car). NOW.... we are in Naples, Florida, 100k used to be a lot for property damage liability. It isnt anymore, in fact at many red lights one single car can easily exceed the 100k limit on many policies. We have a Bentley dealer here folks....
The second example above is 500 CSL which stands for combined single limit. Rather thank the split limit explained earlier, this policy has one maximum amount for both bodily injury and property damage and no per person maximum. All injuries both medical and property are subject to the $500000.00 maximum. Which way is better? Well, that is a difficult question to answer, as both do have advantages and disadvantages, but the one thing is for sure. Both policies are only one part of your total insurance and risk management portfolio.
Have a great day and we'd be happy to have a look at your policy with you anytime.