The Role Limits Play on an Auto Insurance Policy

When was the last time you took a close look at your auto insurance policy? It is critical to know your auto policy limits and their role in your coverage. Serving the Green Valley, AZ area, the Insurance Center of Green Valley team is here to help shed light on the confusing subject.

The Limits and Their Role

When you are taking a look at your auto insurance policy, you will immediately go to the coverages that you have. What do these dollar amounts represent, though? Normally, they will speak to the limits that are in place.

In the sense of the insurance carrier, when they agree to limits on an auto insurance policy, that is the dollar amount they will pay up to in the event of a covered loss you suffer. For example, if you have a claim of liability placed against your auto insurance policy and the limit is $100,000, the auto insurance policy will cover up to that amount in losses. 

The Max of the Limit

The limit is your max point of coverage with your auto insurance carrier. Once you hit that amount, you will no longer be eligible for additional coverage. A Green Valley, AZ insurance policyholder would need umbrella insurance over their auto insurance to receive any additional coverage. If you want to know more about auto insurance, your policy limits, and how you can be sure you have adequate coverage, contact us at the Insurance Center of Green Valley today!