liability insurance

by Ontario Broker » Fri Sep 26, 2008 05:37 pm

I am curious about liability coverage in the USA. What are the limits of coverage for Bodily Injury and Property Damage?

Here in Canada we typically recommend $2 million. The lowest policy allowed by law is $200,000 but anything under $1 million is rarely sold.

I have gathered from some posts on the forum that liability limits are much lower in the USA. It makes me wonder how people who are severly injured cope - do they rely on private medical insurance? Here in Canada we have public health care so the biggest risk is lost income through disability. And our Accident Benefits coverage gives a basic amount of income replacement ($400/week). And yet we still carry $2million liability.

Anyhow, I'd appreciate some insight and education!

Thanks!

Total Comments: 2

Posted: Sat Sep 27, 2008 11:57 am Post Subject:

What are the limits of coverage for Bodily Injury and Property Damage

Each state has their own min...which are rarely enough...each state also has their laws regarding which coverage are a must and their limits...some states (as an example) require UM, some don't all require BI and PD as far as I know...the lowest pd I've seen is either 2 or 5k (ridiculous)...and bi lowest i've seen are 5/10k...some states are PIP some are not...it's a very complicated, and nutty system I wish it were nation wide but it is not...very very complicated at times.

Posted: Sun Sep 28, 2008 01:27 pm Post Subject:

Thanks Lori. I knew it was low but didn't realize it was that low. It is kind of scary when I think of the consequences.

And it's no wonder that all auto and commercial policy applications that I write here in Canada ask about US exposure and the rates change (increase) significantly if there is any.

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