How to Determine the Maximum Amount of Money Your Auto Insurance Company Will Pay

Auto insurance policies can be very confusing if you don't know exactly how to read them and it could become very frustrating. One thing that worries many people after a car accident, especially when they are at fault, is that they won't have enough coverage to repair the damage caused by the accident. You can find out this information pretty easily if you know where to look and you are about to find out where that is. Here is how to find out the limits of your auto insurance policy.

If you are trying to find out how much your auto insurance policy will pay to repair your vehicle after an accident you don't really have to look far. Most insurance policies do not limit the amount they will pay out for your vehicle's repairs, but they do make you pay up a little first. Your comprehensive and collision deductibles will apply before your insurance will pay anything at all, but after these are paid there is no limit. This, again, is in respect to the majority of auto insurance policies, consult your agent to see if your policy is different.

Next, when trying to figure out how much your insurance company will pay for damage you caused to someone else you should consult your liability coverage. This coverage, called BIPD (Bodily Injury Property Damage), is broken down into three different numbers, for example; 100/300/100. In this case the first two numbers are in reference to bodily injury coverage while the third is in reference to property damage.

With this example you can determine that your auto insurance company will pay for up to $100,000 for bodily injuries caused to each individual in an accident. However, they will pay only a total of $300,000 to all injured parties in the crash, this again does not include you and your vehicle. This is the most recommended coverage as the rising costs of medical coverage make these limits lower than they look.

The third number in the set is for property damage caused to another vehicle by your negligence. In this case, your insurance company would pay up to $100,000 in property damage coverage for damage caused to all other vehicles in the accident.

These numbers will help you determine where you stand if you are in an auto accident. The most important thing you can do is to call your insurance agent and see what your coverage is. If you need to you can upgrade your limits and become even more comfortable.