How Liability Coverage Changes Your Car Insurance Quote

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In most states, liability coverage is a compulsory component of a car insurance plan. Liability coverage can be of two types: split single limit or combined coverage. Split coverage includes three components: bodily injury per person, bodily injury per accident, and property damage. Combined coverages do not have any components. They are usually more expensive but have their own advantages.

Bodily injury per person is the coverage for individuals who are affected in an accident. If your liability coverage reads 50,000/100,000/25,000, the insurance provider is willing to bear expenses of up to $50,000 for persons affected in an accident. $100,000 is the total expense that the company will bear toward compensation for the overall damages in the accident, and it will pay up to $25,000 for damages done to the property.

Combined coverage contains a single amount the insurance providers are willing to pay as compensation for damages caused by an accident. The advantage with a combined coverage is that there is no cutoff on the amount payable for individual damages. For example, let us assume that the medical expenses for the individuals hurt in an accident is $60,000 and the property damage compensation is only $15,000. Under a 50/100/25 standard split-limit plan, the applicant will have to incur an expense of $10,000 toward medical expenses. Such a scenario will not arise with a combined plan. However, combined coverages tend to be quite expensive.

Raltin analyzed how premium rates vary greatly by different liability coverages with split limits in some states.

In Colorado, for three liability coverage combinations, the variation is minimal: $8 and $53 more than the minimum amount of $1,323.

Bodily Injury per PersonBodily Injury per AccidentProperty DamageAverage Premium
$50,000$100,000$25,000$1,323
$100,000$300,000$50,000$1,331
$25,000$50,000$15,000$1,376

In Florida, for liability coverage of $50,000/$50,000/$100,000, the average premium is a meagre $1,561. For a coverage limit of $25,000/$25,000/$50,000, the average premium increases by $5,892, to cost $7,453.

Bodily Injury per PersonBodily Injury per AccidentProperty DamageAverage Premium
$50,000$50,000$100,000$1,561
$25,000$25,000$50,000$7,453

In the state of Kentucky, the average premium varies significantly across the four liability coverage combinations. The minimum is $1,625 while the highest is $7,981, which is a difference of $6,356.

Bodily Injury per PersonBodily Injury per AccidentProperty DamageAverage Premium
$50,000$100,000$50,000$1,625
$25,000$50,000$25,000$2,150
$100,000$300,000$100,000$7,093
$300,000$500,000$100,000$7,981

In Maryland, the difference between the highest average premium and the lowest one for different liability coverage combinations stands at a modest $1,534. The lowest is at $1,766 and the highest is at $3,300.

StateBodily Injury per PersonBodily Injury per AccidentProperty DamageAverage Premium
Maryland$250,000$500,000$100,000$1,766
$30,000$60,000$15,000$3,062
$100,000$300,000$50,000$3,300

In North Dakota, car insurance premiums are generally inexpensive. The minimal average premium for a liability coverage of $25,000/$50,000/$25,000 is $363. For a coverage of $100,000/$300,000/$50,000, the average premium is $325 higher, at $688.

Bodily Injury per PersonBodily Injury per AccidentProperty DamageAverage Premium
$25,000$50,000$25,000$363
$100,000$300,000$50,000$688

In South Carolina, the lowest average premium is $1,649, and the highest is $1,940—a difference of $291.

Bodily Injury per PersonBodily Injury per AccidentProperty DamageAverage Premium
$30,000$60,000$25,000$1,649
$50,000$100,000$50,000$1,780
$100,000$300,000$100,000$1,940

Find a comprehensive analysis of all the ways to you can save on your car insurance, here.

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