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30/60/25 refers to 3 different items. The first number, 30, refers to how much money the insurance company will pay to any one person, not including you, for bodily injury in an accident that you caused. The 30 translates to 30 thousand dollars. So if you injure someone while driving your car, your insurance company will pay up to $30 thousand to that person.
The second number, 60, refers to the total amount of dollars that your insurance company will pay to two or more people that you injure while driving your car. It means that up to $60 thousand will be paid to the injured parties. Let’s say that you injure 3 people in an auto accident, and each one sustains $30,000 in bodily injuries. Even though their claims against you total $90,000 (3 times $30,000), your insurance company will only pay out the maximum $60 thousand. And, no one will receive more than $30 thousand.
The third number, 25, refers to a property damage payment of up to $25 thousand. Property damage includes the car(s) you ran into, and other structures that you may have damaged. So, if you total a luxury car like a Mercedes, you may have to get out your check book to make up the difference.
As you may have noticed, if you have only the minimum of liability insurance, you are probably woefully underinsured. If you injure someone and they need to go into the hospital, it won’t take long to exceed the minimum $30 thousand coverage. Then, you’ll be liable for amounts beyond the $30 thousand.
If you have the minimum liability insurance now, consider talking to an insurance agent and asking how much it would cost to increase the liability limits. Protecting your assets and future income may not be as expensive as you think.
Brycast Financial Planning in Austin Texas --- We Can Help
Income Tax Preparation in Austin Texas
contact: service@brycast.com http://www.brycast.com/
Enrolled Agent; Investment Advisor Representative
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