Are you current limits really high enough to protect you? Most people think they have more coverage than they really do. This is because most companies sell what are called Split-Limit policies. This means that both your Liability and Uninsured Motorists limits are split into three sub-limits:
Bodily Injury Per Person
Bodily Injury Per Accident
The typical policy has $100,000 per person, $300,000 per accident, and $50,000 for Property Damage. Most people see these limits and just assume they have $300,000 in coverage, which they do if three or more people are seriously injured. However, each person is limited to only $100,000 in coverage. If you total an $85,000 Mercedes Benz, your policy will only pay $50,000. The worst thing about this is that the "per person" might be you. If you are hit by a drunk driver who leaves the scene or has little or no insurance, the most you will be able to collect is the $100,000 per person limit for Uninsured Motorists.
This is why we prefer what is called a Combined Single Limit policy. These policies have just one Limit for both Liability and Uninsured Motorists coverages with no sub-limits. We typically sell policies with limits of $300,000 or $500,000. Since there is no "per person" or Property Damage sub-limit, if you are seriously injured by an uninsured drunk driver, you can collect up to the entire policy limit of either $300,000 or $500,000. If you total the $85,000 Mercedes, you would be fully covered and would not have to come out-of-pocket to pay the claim.
The best thing about a Combined Single Limit (CSL) policy is that even though a $500,000 CSL policy is effectively 5 times the coverage provided by the typical $100/300/50 Split-Limit policy, they do not cost 5 times the price. In many cases we can actually save you money by combining your Auto, Home, & Umbrella with the same carrier to get an account credit on all of your policies.
ACE Private Risk Services
AIG Private Client Group
3201 New Mexico Ave NW #300
Washington, DC 20016