Mexican Auto Insurance - Why Pay More and Get Less?

By: Linden Gray

Even seasoned insurance personnel can be confused as to just what liability limits mean and how they are applied. I have heard many agents warning buyers that they should beware of split limits, for example.

In fact, this is not true. Split limits or CSL (combined single limits) are both legitimate choices, depending on the situation. This depends on what the actual amounts of the limits are, and not just how they are applied in any particular loss.

For lesson purposes, CSL or Combined Single Limits of either $50,000 or $100,000 apply to either Property Damage Liability or Bodily Injury Liability. In other words, the maximum covered amount an insurance company will pay for damages that are your fault is either $50,000 or $100,000 and it makes no difference whether it's a BI or PD loss.

A liability loss can be either all Property Damage or all Bodily Injury or a combining of the two. However, depending on which coverage limit you decide to purchase, the maximum amount covered is either $50,000 or $100,000.

If you have split limits, such as $100,000 worth of coverage for bodily injury (BI) per person / $300,000 BI coverage per accident, and $100,000 worth of coverage for property damage (PD), this means that the insurance company is required to pay up to $300,000 in BI (depending on the number of persons injured), as well as up to $100,000 worth of PD claims.

For example: Let's suppose you have a choice between a $50,000 combined single limits or a policy that has split limits of $50,000 BI coverage per person, $50,000 BI coverage per accident, and $50,000 coverage in property damage.

In Mexico, you might be in an accident with someone else's brand new SUV, so we suggest that you carry a minimum limit of $50,000 for Property Damage Liability.

My Preference is B because I would have $50K BI AND $50K PD, or a maximum of $100,000 protecting against loss versus $50k to protect against all potential Bodily injury or Property Damage loss in example A.

If you're still confused about how much each type of coverage protects you, contact your own financial adviser and have him or her go over the different types of policies with you. This information is intended for educational purposes only.

Niche Article Directory: http://www.thatsmyniche.com

Author Linden Gray is an multi-line insurance veteran with over 29 years of commercial & personal insurance experience. Mr. Gray has been featured in numerous publications including RV Magazine, PE.com, Google, Yahoo, Digg & Buzzle. Visit his website here: mexican car insurance.

Please Rate this Article

5 out of 54 out of 53 out of 52 out of 51 out of 5 

Not yet Rated