If you are carrying Missouri state minimum auto liability limits, it means your auto liability limits are $25,000/$50,000/$25,000 ($25,000 per person, $50,000 Per occurrence and $25,000 property damage) the lowest legal limit allowed by law. Auto limits this low can open you up to out of pocket exposures that are not necessary.
Example 1:
You cause an accident that results in $50,000 in bodily injury for the driver, only $25,000 will be paid from your auto limits. Yes, your total per accident coverage is $50,000, but your per person is only $25,000. This leaves you on the hook for the difference. Also, if anyone else was injured in that vehicle, you will only have $25,000 for the total remaining amount.
The average number of people per family in the US in 2019, was 3.14. Let us use this as an example. If you hit a family of four, and just two of the family members injuries results in $75,000, your auto liability limits will only cover $25,000 for those two members and maxes your policy at $50,000, leaving the remaining $25,000 uncovered. Not to forget, if the other two family members were injured as well, there’s no coverage because your auto limits have already been maxed out.
Example 2:
The average cost of a new vehicle on the road today is over $30,000. If you hit and total a $60,000 vehicle, that is a $35,000 gap between your minimum $25,000 property damage limit.
Here at SBInsure, we recommend our customers carry minimum limits of $100,000/$300,000/$100,00. Increasing your limits will assist in minimizing your out of pocket exposures that are very common in the world we live in today. Give us a call or stop in for a complete detailed review of your current auto policy, plus see how bundling your home or renter’s policy can ensure you have sufficient liability limits that fit your lifestyle!
