Groceries, rent, gas, utilities and phones are just a few of the common household bills. With those alone, families feel the pinch especially with so many unemployed in our current economy. In addition to that, we have insurance. While people feel insurance is just an added bill, we don’t understand its true value until there is a claim. It’s at that point, where we are thankful for choosing the proper coverage. It’s also at that point where people realize that picking less coverage for a smaller insurance payment has left them with much bigger burdens when the claim isn’t covered.
When purchasing auto insurance, your agent may mention that the minimum required limits are “20/40/10″.
Let’s take a closer look at what this means.
“20″ is the limit that your carrier will pay for bodily injury to one person per accident. This means that if you hurt somebody with your vehicle, your insurance will pay that person $20,000 for their medical bills.
“40″ is the limit that your carrier will pay for all people injured in an accident.
This number is a little tricky. Let’s say you run a red light and smash into a sedan full of people. If you injure only two people, they both will receive $20,000 (with 20/40/10 limits). However, if you injure three people, they must split the maximum limit of $40,000 (meaning each person will receive only $13,333).
The third number denotes the limit of liability on property. This means that if you damage somebody’s property, your carrier will pay up to $10,000. As you can see, these limits are very low. We highly recommend limits in excess of 100/300/100. A personal umbrella policy will also protect you in case you are sued. Visit our website or call us today at 860.684.5270 to update your coverage!
For more information regarding current limits or to talk to one of our specialists regarding your ct auto insurance, contact the team at Paradiso Insurance at (860) 684-5270 or feel free to stop into our Stafford location at 8 East Main Street!