The Royal Wedding, Multi-car Accidents and Split Liability Limits.

I actually have nothing to say about Prince William and Kate’s wedding, but that is all the media is talking about so I thought it might grab your attention so I can discuss something more interesting. I have a folder that is full of newspaper clippings on various insurance topics (told you I was interesting).  One particular article from this past winter reported that a woman lost control of her car driving through an intersection in Willoughby.  She struck a stopped car and spun out of control, hitting five other vehicles before her car came to a stop.  While the extent of the property damage is unknown, it is safe to say that it was much higher than a typical accident.  Proper insurance protection plans for both the expected and unexpected. That is an accident one would soon like to forget. However, if you find yourself underinsured you may have years of garnished wages before your debt is paid off. 

Split liability limits are common in Ohio. What are split liability limits?  The term refers to what limit insurance companies will pay out for bodily injury and property damage if you cause an accident. For example, the State minimum for liability is $12,500/$25,000/$7,500.  This means that if you had those limits of coverage, your insurance company would pay a maximum of $12,500 in bodily injury per person for those that you injure with a maximum of $25,000 in bodily injury per accident if more than one person is injured.  In addition, the insurance company would pay a maximum of $7,500 in property damage to repair the vehicle(s) that you damage.  In the above example, you can imagine how those limits would be exhausted quickly leaving the driver personally on the hook for paying for the excess damages.  Our agency recommends that you carry a combined single limit of $500,000 on your personal auto policy for your financial protection. *The liability limits of the above, unnamed driver are unknown.  The example is for the purpose of conveying the potential danger multi-car accidents pose to your liability.