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
If you injure someone while driving, you are legally and financially responsible. Victims can pursue you for compensation of their medical bills, lost wages, ongoing rehabilitative care, and emotional distress. A jury could also place punitive damages on you for negligent behavior, such as texting behind the wheel or driving while under the influence of substances. The costs can quickly add up – often reaching tens or even hundreds of thousands of dollars.
Bodily injury liability insurance is designed to cover your financial liability when you injure one or more people in an accident. As a driver in Wisconsin, you are required to carry at least the minimum coverage mandated by law, but we here at Carrigan Insurance recommend much higher limits to protect your income and assets against litigation fully.
Split Limits vs. Combined Single Limit (CSL)
The liability section of your policy will show your bodily injury liability limits as either a combined single limit or a split limit. A combined single limit will appear as a single number, such as 300 CSL. This would indicate that the insurer will pay up to $300,000 for total bodily injury liability per accident, regardless of the number of victims.
A split limit is different in that it imposes two different limits. The first is an individual coverage cap and the second is the total available bodily injury liability coverage per accident. A 250/500 split, for example, will pay as much as $250,000 for the injuries of each victim, but no more than $500,000 total per accident.
Money to Protect You and Your Passengers against Uninsured or Underinsured Drivers
The law requires that all drivers in Wisconsin have liability insurance, but more than 1 in 10 do not. If an uninsured driver injures you, it could take years to recover your losses, if you do at all fully. Uninsured motorist (UI) protection can help cover you and your passengers if you are injured in a hit-and-run or by an uninsured driver. We also offer underinsured motorist (UIM) coverage to bridge the gap between an at-fault driver’s insufficient liability limits and your actual losses.
Money to Help with the Little Things
How much will it cost you to pay for temporary transportation while your car is being repaired after a collision? How much will you have to pay for towing fees or medical co-pays and health insurance deductibles? At Carrigan Insurance, we offer extra coverage to help with the ‘small’ expenses that can otherwise put a drain on your savings. Contact us today to find out how extra coverage can enhance your policy and reduce your financial burden after an accident.
Beyond Car Insurance
Your primary liability insurance is designed to protect you against most scenarios. However, there are gaps left behind by car insurance and other primary coverages that can leave you with a major financial burden. For example, if your insurer offers a maximum of $500,000 in total collision liability, how would you pay for a million-dollar lawsuit? Even with the highest limits, you still need additional coverage to protect your assets.
Umbrella insurance is supplementary liability insurance that extends your coverage beyond the limits of your primary policy. This affordable insurance usually provides $1 million or more in additional coverage that can protect your family from financial ruin. For more information about umbrella insurance and whether it could be right for you, contact our team at Carrigan Insurance today.