By: A. Ray
If you own a car, chances are you have a personal automobile policy. Auto insurance covers an automobile operated for personal use. The basic policy coverage is made up of four main parts: Liability,Medical Payments,Uninsured and Underinsured Motorists,Coverage for Damage to Your Auto (Comprehensive and Collision).
Liability compensates the driver of the other car and its passengers for bodily injury or property damage you cause. It also compensates the passengers in your own car. The policy limits may be purchased as either a single limit or as split limits. A single limit is a flat amount that is the maximum that the company will pay out for any one accident. A split limit is basically three separate limits. For example, a person with limits of 25/50/25 would have coverage for up to $25,000 for bodily injury to any one individual, up to $50,000 of coverage for all bodily injury in any one accident, and up to $25,000 of coverage for property damage in any one accident. This coverage is required in most states. This is where you need to determine how much you should purchase based on the assets you have to protect.