There are a variety of exclusions and limitations with respect to car insurance. You should read your policy and understand the terms, such as the deductibles, exclusions, and limitations, which vary by state. You need to be sure that you at least have the minimum auto insurance coverage required by state law.
Insurance policy limits written as 200/300/100 typically are for bodily injury and property damage liability. This means the limits for bodily injury would be $200,000 per person for injuries you caused to the other person, with a top limit of $300,000 for all injuries sustained in that one incident. The final 100 stands for a $100,000 limit for coverage of property damage that you caused to another party in one accident.
No Fault Car Insurance Coverage
The type and range of no-fault car insurance coverage varies from state to state. What defines the limitations of no-fault policies can differ. The threshold is the type of damage/injury or the cost of repair/recovery that triggers the need for legal action. Florida has a financial responsibility auto insurance law that requires any person at fault in an accident with bodily injury and property damage to have full liability insurance coverage. This coverage must include minimum liability limits of 10/20/10 and personal injury protection (PIP) limits of $10,000 per person per accident.
California has a financial responsibility law for auto insurance that requires every driver to be financially responsible. The minimum limits of liability insurance in California are as follows: bodily injury, $15,000 for death or injury of any one person in any one accident, and $30,000 for all persons in any one accident, and $5,000 for property damage for any one accident.
The mandated benefit level is the package of benefits (medical, wage loss, replacement services and other expenses) your state requires you to carry. The details of no-fault insurance can be complicated. Your agent or your state's insurance department can give you further information.
Lawsuit Limitation Option
The lawsuit limitation option limits your legal rights to make claim for monetary damages or to file a lawsuit against a careless driver unless you sustain one of the following types of injury.
- Type 1 - Death
- Type 2 - Dismemberment
- Type 3 - Significant disfigurement or scarring
- Type 4 - Displaced fracture
- Type 5 - Loss of a fetus
- Type 6 - Permanent injury
A permanent injury occurs when a part of the body is not going to heal to normal functioning. It is recommended that you do not elect the limitation on lawsuit option.
First Party Benefits
The time limitation for the combined benefits option of first party benefits coverage will depend upon the state and their statute of limitations laws. The benefit usually cannot exceed a period of 3 years and the insurance provider will only pay for expenses or loss incurred within three years from the date of the accident. For more information regarding the coverage that you have, you can contact your insurance company to help you review the terms of your policy and the time limitations.
You may also want to contact your state's insurance regulatory department for information on the state's limitation statutes. First party benefits are known most prominently in the state of Pennsylvania. Some companies call it Pennsylvania Options. Depending on the specific coverage you select, if you are injured in an accident, first party benefits can cover you and relatives living in the same household for medical expenses, lost income, accidental death, and/or funeral costs. The amounts covered are capped at the limits you select when you buy your auto insurance policy. Be sure to consider carefully the amount and kind of coverage you need.
First party benefits medical coverage is required in the state of Pennsylvania and is called personal injury protection (PIP) by some providers. This medical coverage pays medical bills regardless of who is at fault. The mandatory minimum required by law in Pennsylvania is $5000 and is called basic first party benefits coverage. You can purchase higher limits for your auto insurance up to $100,000.
Optional Coverage
Other optional coverages can be added to your car insurance policy for work loss, funeral benefits and accidental death. Personal injury work loss car insurance coverage provides reimbursement for wages lost due to an auto accident. Funeral benefits pay funeral costs when you or a family member dies due to an auto accident. Accidental death pays benefits if you or a family member dies due to an auto accident. There are various limits for auto insurance, which you can choose for each of these optional coverages.
Combination benefits include coverage for the required medical coverage plus additional coverages of work loss, funeral expenses and accidental death. This combination type of coverage has a maximum combined limit.
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