Why Auto Insurance Bodily Injury Limits Matter Part 2
Updated: Feb 15
Many people try to keep their auto insurance premium amount as low as possible which there is nothing wrong with that. However, many do it by having the lowest bodily injury limits available, also known as state minimum limits. This is not good, for many reasons including the increasing price of cars, and medical costs. In Kansas, the minimum limit you are allowed to run is 25,000/50,000/25,000. What do those numbers mean? The first 25,000 is the total amount your insurance company will payout for the other party's medical bills. The 50,000 is the total amount your insurance would pay for the other party's medical bills. The last 25,000 is for property damage; this includes the other party's vehicle, for example. Just for a second, I want you to think about that last number, $25,000, and then think that in 2020 the average price for a new car is $40,573. To put that into perspective, say you accidentally hit a person who has a 2020 Silverado Trail Boss, which goes for around $42,000. Your insurance would only pay out $25,000 for the truck YOU would be responsible for the remaining $17,000. If that happened to you today, would you be able to come up with that money? If not, then I would increase your bodily injury limits. The lowest I personally would recommend is 50,000/100,000/50,000. However, if possible, I would have 100,000/300,000/100,000 to ensure that you are completely covered.