#Insurance

Insurance 25/50/25

When reviewing coverage alternatives with your agent, you might have come across the 25/50/25 rule when it comes to vehicle insurance. Let's examine these figures more closely, both collectively and individually. Overall, it's a condensed method of expressing liability limits in auto insurance. It's critical to know how to interpret liability coverage numbers if you want to buy vehicle insurance soon, which most people will have to do at some time.

It's also crucial to understand that these are the minimal levels of protection permitted by the law. You face the danger of obtaining a ticket, a fee, or possibly having your car seized if you do not have these minimal levels of insurance. Those who are repeatedly found to have coverage levels below the required minimums risk having their licenses suspended.

What is 25/50/25 insurance?

In your 25/50/25 insurance the amount you pay for bodily injury damages for an individual can exceed $25,000. Approximately 5% of auto insurance policies require 25/50/25 coverage. The states that are below this minimum are Alaska, New York, New Jersey, Mississippi, New Hampshire*, Ohio, Oklahoma and Texas. Each state has statutory minimums for car insurance. In short, these three numbers represent the limits of your auto insurance coverage.

What do numbers 25/50/20 mean on an insurance policy?

The numbers 25/50/20 on your insurance policy represent the monetary limits on your liability coverage