What Are My Insurance Liability Limits On My Auto Policy?
Many people do not know what their bodily injury liability limits are when it comes to their car insurance. Unfortunately even fewer understand how they work for them in the case of an accident. We are going to break it down here.
In Oregon, the minimum bodily injury Liability Limit a driver can have in their insurance policy is 25/50/20.
So what does that mean, exactly?
The first number, 25, is per-person coverage in an accident. Should you be in an accident and be found to be at-fault, you are covered for up to $25,000 per person, per accident. So what happens when there is more than one person in the car, who is also injured in the crash? That’s where the second number comes in to play…
The second number, 50, is your per-accident limit. Even though you have $25,000 per person per accident for any injuries, that number is limited at $50,000 should there be more than one person in the other car or cars. In other words, while you do have up to $25,000 for each person injured in the accident, when many passengers are injured, it could average out to be much less per person, leaving you with big medical bills to heal many people injured in the accident.
The third number, 20, gives you $20,000 in property damage in any accident. That can also get used quickly when a vehicle of higher value is damaged, or other objects such as a street light, sign, or building for example.
By accepting this limited coverage in your auto policy, you are setting yourself up for real trouble should you be found at fault after an accident. These limits often times leave people having to pay in cash for the others who were injured in the accident or even have their wages garnished by the state to make them whole.
We recommend carrying at a minimum 50/100/50, and ideally everyone would have at least 100/300/100 in their Liability Limits.
If you would like a good agent to review your coverage, make sure it is at an acceptable level to fill any gaps in exposure to you or your household, please reach out any time. We are happy to help you understand what you currently have, if it is enough, and how you can get better coverage even for less money.