When shopping for auto insurance, you’ll come across various terms that might sound confusing at first. One such term is “split limits.” If you’re in Alabama or Georgia and want to know what split limits are and how they affect your coverage, this blog post is for you. We’ll break down what split limits mean, why they matter, and how you can ensure you have the right coverage for your needs. Plus, we’ll show you how AL-GA Insurance can help you find the best auto insurance rates and provide free policy reviews.
What Are Split Limits in Auto Insurance?
Split limits refer to the way auto insurance policies specify the maximum amount an insurer will pay for different types of coverage in the event of an accident. Typically, these limits are presented in a format like “25/50/25,” where each number represents a different aspect of your coverage:
- 25/50/25: This represents a typical split limit, with the first number indicating the maximum amount in thousands of dollars the insurer will pay per person for bodily injury. The second number represents the maximum total amount for bodily injury in one accident. The third number shows the maximum amount for property damage per accident.
Example of Split Limits in Action
Imagine you’re involved in an accident where you’re at fault. Here’s how split limits work:
- Bodily Injury Per Person: The first number (25 in our example) represents the maximum coverage per person for injuries caused by the accident. If a person suffers injuries exceeding this amount, you could be liable for the additional costs.
- Bodily Injury Per Accident: The second number (50 in our example) is the maximum total coverage for all injured parties in the accident. If the total injuries exceed this limit, you might have to pay the difference.
- Property Damage Per Accident: The third number (25 in our example) represents the maximum coverage for property damage, which could include damage to another vehicle, fences, buildings, or other structures. If the damage exceeds this limit, you would be responsible for the remaining costs.
Why Are Split Limits Important?
Split limits are essential because they define your financial responsibility in the event of an accident. Understanding these limits helps you assess whether your coverage is sufficient. If your limits are too low, you could face significant out-of-pocket expenses in case of a severe accident. Additionally, having higher limits may provide better protection against lawsuits resulting from accidents.
Alabama and Georgia Minimum Split Limits
Both Alabama and Georgia have minimum split limit requirements for auto insurance. Here’s a quick overview:
- Alabama: The minimum split limits are 25/50/25, meaning $25,000 bodily injury per person, $50,000 bodily injury per accident, and $25,000 property damage per accident.
- Georgia: Similarly, Georgia’s minimum split limits are also 25/50/25.
While these are the minimum requirements, they might not be enough to cover the full costs of a severe accident. That’s why it’s crucial to evaluate your risks and consider purchasing higher limits.
Get a Quote with AL-GA Insurance
If you’re unsure whether your auto insurance policy has the right split limits, AL-GA Insurance is here to help. We offer free policy reviews to assess your current coverage and recommend adjustments if needed. Our experienced agents will compare quotes from various carriers to find you the best rates while ensuring you have adequate protection.
Don’t leave your financial security to chance. Contact AL-GA Insurance today for a personalized quote and a free policy review. Let us help you get the peace of mind you deserve on the road.
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