I just got off the phone with someone asking about auto insurance.  They told me they only wanted “state limit insurance”.  I explained that we always recommend higher limits to be sure and protect your assets.  She then stated, “Why, you can only be charged what your insurance is.”  That is not true.  Your insurance company will only pay the limit of your coverage but you may be liable for far more than that.

How many of you know what those limit numbers on your policy mean?  So the person who wanted “state limit insurance” which would look like this on the policy Bodily Injury $25,000/$50,000/ Property Damage $25,000 what does that mean?

It means you have $25,000 per person for Bodily Injury/$50,000 for all persons in the vehicle for Bodily Injury/$25,000 for Property Damage.  So if you are in an accident found to be at fault and one person in the accident has $100,000 your insurance will pay $25,000 of the medical bills and you will be responsible for the remaining $75,000 because you have exhausted the limits of your insurance. 

Your policy will pay a total of $25,000 for damage to the other vehicle; you are liable for the remaining amount. 

How many vehicles do you think cost more than $25,000 on the streets of Tulsa, Oklahoma?  My guess is more than 50%, what’s yours?

Buying lower limits on your auto insurance can you put your home and assets at risk.

A few things that you need to know to save you money before you buy auto insurance are:

1.)    There are discounts available for taking at least 100,000/300,000/100,000 limits on your auto policy.

2.)    If you purchase your homeowner insurance from the same company, there are discounts available on both policies.

3.)    The higher the deductible you choose there are discounts available to save you money.

So call us at Sawyer-Phillips & Associates Insurance so we can give you a great quote on all your insurance needs!