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
Without the right liability coverage, you could lose big if you cause an accident. Just like property damage liability, bodily injury liability also requires that you purchase adequate limits if you want to minimize your financial vulnerability after an accident. If you cause a collision that injures one or more people, you are responsible for their medical bills, lost wages, and more. A jury could also impose punitive damages – especially if you were negligent at the time of the accident. It does not matter if you were texting behind the wheel, blew a tire, or simply skid out of control on a patch of black ice, what matters is that the accident happened, and you are totally or partially at-fault.
Bodily injury lawsuits can total hundreds of thousands of dollars. Wisconsin requires that all drivers carry a minimum amount of bodily injury liability coverage, but the limits are far too low to cover all of the liability after a major collision. Here at Stauffer-Klug Insurance, our goal is to look after the best interests of our customers. We recommend purchasing much more than the minimum bodily injury liability coverage as a means of protecting your income and assets against a major loss. Considering you might have to pay any excess liability beyond the limits of your policy out of your own pocket, it is easy to see why having the right coverage is so important. Without it, you could be putting your savings and financial future at risk.
Split Limits vs. Combined Single Limit (CSL)
Your insurance company will list bodily injury coverage limits in your policy either in the form of a combined single limit (CSL) or split limits. A combined single limit is a maximum amount the car insurance policy covers for total bodily injury liability per accident. It may appear on your policy as a single number, such as 300 CSL. In this case, 300 CSL would indicate a maximum of $300,000 total bodily injury coverage for all victims combined in an accident.
A split limit looks different. On your policy, it may appear as two separate numbers, such as 250/500. The first number is the maximum amount in thousands the insurance company will pay toward bodily injury liability per individual victim. The second number is the total amount in thousands the insurance will pay for bodily injury liability for all victims combined per accident.
Money to Protect You and Your Passengers against Uninsured or Underinsured Drivers
Driving without insurance is against the law, yet many Jefferson area drivers still do it. If you are unlucky enough to be hit by an uninsured motorist, you might have a difficult time recovering compensation for your injuries. In this case, uninsured motorist (UI) protection can step in to provide coverage for you and your passengers’ injuries. Similarly, underinsured motorist (UIM) protection can pick up the slack left behind when you are hit by a driver with too little coverage to cover your injuries.
Money to Help with the Little Things
When you think of an accident, you might think of damaged vehicles and lawsuits. However, there are plenty of other small expenses that go less noticed. For example, towing charges can cost hundreds of dollars after a collision. Add on the cost of a rental car for a week or two while your car is being repaired, plus the cost of doctor office co-pays and your health insurance deductible, and your budget could quickly deplete. Instead of spending hundreds or even thousands of dollars on all the ‘little’ things, let us customize your policy with extra coverage for medical payments, towing, rental cars, and more.
Beyond Car Insurance
Keep in mind that even a well-tailored car insurance policy might come up short of meeting your coverage needs in a major accident. When lawsuits soar past even the highest liability coverage limits, supplemental liability can provide the extra protection you need to safeguard your income and assets against a devastating loss. Umbrella insurance is a separate policy that is secondary to the primary liability protection on your car insurance. Once you reach the limits on your primary coverage, umbrella insurance can bridge the gap, extending your liability protection by an additional $1 million or more.
Umbrella insurance is surprisingly affordable given the high coverage limits it carries. With low premiums and the potential to protect a family’s financial future, we recommend all drivers consider adding this important coverage to their insurance portfolios.