Single Limit Car Insurance Guide
If you have ever heard of Single Limit Insurance or Combined Single Limit coverage you may wonder what this type of coverage is. The basic concept of SLI coverage is that you are covered for bodily injury and/or property damage claims up to the amount that your coverage is for. For example, if you had a $35,000 SLI or CSL policy, then your insurance company would pay for injuries or property damage up to that $35,000 limit. There would be no further coverage for the accident, unless you had another type of coverage that would pay for it.
What About Split Limits?
Split limit insurance coverage is a little bit different than a CSL. There are separate payments for property damage and injury. Let's say that you had split limit coverage of $25,000 for bodily injury and $10,000 for property damage. Your total would be for $35,000, but bodily injury claims would only be covered up to $25,000 and not more than that. The $10,000 could not be used for anything except property damage claims. Split Limits can be very beneficial, dependent upon the limits that are on your coverage, as they add up to better coverage over the full liability scale.
What About Personal Injury?
The best option for personal injury protection is PIP or Personal Injury Protection coverage. PIPs are geared toward coverage for any injuries you sustain. In addition to covering you, your passengers in your car and any injuries or property damage to people outside of your car are covered with PIP policies. This is in stark contrast to Single Limit insurance which is primarily in place to cover you in the case of injury or property loss to others, for which you are at fault. You should also remember that some states make PIP coverage mandatory.
What About Uninsured Motorists?
It is a scary statistic to hear, but up to 12% of all drivers on the road are uninsured or underinsured. This figure can balloon up to an astonishing 25% in some states. Knowing that this is a fact, it might be wise for you to get Uninsured/Underinsured Motorist coverage on your policy. There are some states that require this kind of coverage, but not many states have this requirement. If your state doesn't require this insurance you may still want to consider getting it. It can offer you protection if you are involved in an accident with an uninsured driver.
What Else Should I Consider?
If you have a car that you still have a substantial number of payments to make on, you may want to think about getting Gap coverage. This coverage will pay off all of your balance on a car that you are making payments on in the case of an accident. There are a lot of different types of coverage that will only cover your car up to the current book value. If you consider the fact that your car begins to depreciate in value the moment you drive it off the lot, getting a payment for the book value of your nearly new car that has been wrecked, is not a great deal. After your insurance company covers the book value, you may find that you still owe a lot of money on your car loan. Gap insurance offers you protection from these types of unfortunate circumstances.