What Is A Car Insurance Per Occurrence Limit

It’s difficult to fully understand all of the limits in a car insurance quote. However, if you’re serious about buying good car insurance coverage, you should know at least the basics of how your coverage works in an accident. Otherwise, you might get an unpleasant surprise down the line. Many drivers often misunderstand per occurrence limits, for instance, but per occurrence limits are far from trivial; they can make a huge difference if you’re involved in a serious accident, whether or not you’re at fault.

“Per occurrence” limits exist in states where insurance companies can legally limit their risks depending on the number of passengers involved in an accident–which is most states. Your policy will have a bodily injury liability coverage limit, which is typically rated “per person.” A common car insurance bodily injury liability limit would be around $50,000, but there’s often a second number next to this, and that’s your per occurrence limit. A car insurance policy that offers $50,000/$100,000 coverage would cover you for medical damages of up to $50,000 per person, for up to $100,000 per accident. If there are several people injured, they may all be covered, but only up to $100,000 total, regardless of the injuries that each person sustained during the accident.

In a major accident, damages can quickly become excessive. It’s therefore just as important to look at your per occurrence limit as your per person limit when you’re doing a bit of car insurance comparison. Talk to an insurance agent to determine a good amount of coverage based on your driving habits. For instance, if you drive in congested areas and you regularly carry a few passengers, you’re going to want higher limits and lower deductibles. If, on the other hand, you’re a rural driver who doesn’t spend a lot of time on the road, it might be acceptable to lower your coverage or even to pay the state minimum requirements for bodily injury liability coverage. Limits are often different for every driver and every vehicle.

Look at every coverage limit on your car insurance quote, not just the first number you see; this will allow you to engage in active car insurance comparison that results in a well-covered automobile that you won’t have to worry about. Don’t try to skimp on car insurance coverage just to get a better rate. Remember that there are dozens of ways to reduce your monthly premiums, including car insurance comparison, discounts offered by your insurer (such as low mileage discounts), defensive driving courses, etc. Understand your car insurance coverage, do your research, compare different car insurance quotes, and you’ll be able to drive with peace of mind.

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