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What is auto insurance?
Auto insurance protects you against financial loss if you have an accident. It is a contract between you and the insurance company. You select the coverages, agree to pay the premium and the insurance company agrees to pay your losses as defined and UP TO the the limits of protection YOU have selected. The state of Missouri mandates all motor vehicles driven on it's roadways carry a minimum liability limit of $25,000 each person you injure which includes loss of income/$50,000 for all combined injuries to other parties and loss of income(s)/$10,000 property damage to whatever you hit(car, building, 18 wheeler etc). We call this split limit liability 25/50/10 for short.
Split limits could be: 25/50/10, 25/50/25, 50/100/25, 50/100/50, 100/300/50, 100/300/100, 250/500/100 or 250/500/250...many options to choose from.
Another option is Combined Single Limit(CSL) of $60,000, $100,000, $300,000 or $500,000.
If higher limits than 250/500/250 or $500,000(CSL) are needed a Personal Umbrella can be added.
We have all been stopped in the mile long traffic jam due to accident ahead or turn on the news and there will be an accident involving an 18 Wheeler(Tractor Trailer), car hitting a building, car hitting a train, or a serious/fatal injury in a multi-car pile up. FYI, the cost of an 18 Wheeler's Cab, not including the trailer and it's contents(by the way you could/should have to pay for as well), can exceed $100,000; therefore, why anyone would carry less that 100/300/100 or $300,000(CSL) is a scary thought when a major loss occurs. What happens if you have such a loss with lower limits?
The liability limits shown on the declaration page will pay for the attorney fees for your defense costs(litigation can take years), medical costs for injuries & loss of income to other driver and passenger(s) along with damages to the vehicle(s) ONLY up to the limits you have selected. If you are one of the many driver's who simply say I have nothing sue me.....guess what? Your wish just came true, you will be sued and if judgement goes against you it's garnishment of wages until settlement is paid in full. Your choice.....
Unfortunately, driver's to your right/left or behind you may think differently: e.g. I'm on a fixed budget; therefore, state minimum limits are all I need. I don't own anything, so sue me. This is why higher limits allow a person to obtain higher un and under-insured motorist protection.
HIGHER LIMITS OF LIABILITY ARE AVAILABLE AND RECOMMENDED
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