How much will my company pay if I am responsible for an auto accident?

You are responsible for an automobile accident, how will your auto policy respond? It depends on the type and amount of liability coverage you have.
 
$300,000 vs. $100,000/$300,000/$100,000 – What does this mean?
 
If you see just one limit, $300,000, that means that your company will pay up to $300,000 total for the accident. The other, $100,000/$300,000/$100,000, limits coverage for individuals injured and for their property.
 
Example:
 
It is a rainy day and you accidentally hit a large patch of water and you lose control of your car. You end up hitting the car in front of you and the car beside you. Luckily no one is injured. But, one of the cars you hit was a brand-new Jaguar valued at $135,000 and unfortunately the car is totaled. The other automobile, a Jeep, is severely damaged but luckily it is not totaled. The cost of repairs is $30,000.
 
How the two different policies would respond:
 
$100,000/$300,000/$100,000
 
Your company would pay $100,000 in property damage coverage. You would be responsible for the additional $35,000.
 
$300,000
 
Your company would pay the full $135,000.
 
Now, what if the drivers were injured? Let’s say the Jaguar’s driver sustained $125,000 in injuries and the Jeep’s driver $50,000 in injuries. How would the two different policies respond?
 
$100,000/$300,000/$100,000
 
With this type of coverage the company will not pay any one individual more than $100,00 for their injuries.
 
Jaguar driver: Company would pay $100,000. You would be responsible for the Jaguar driver’s remaining $25,000.
 
Jeep driver ($50,000 in injuries) – Policy would pay $50,000
 
Policy will pay: $100,000 in property damage plus $150,000 in bodily injury for a total of $250,000.
 
Amount you will owe: $90,000. Jaguar: $25,000 for the driver’s remaining medical and $65,000 for the remaining property damage.
$300,000
This coverage will pay up to $300,000 per accident (occurrence):
Jaguar                            $135,000
+ Jeep                            $ 30,000
+ Jaguar driver              $125,000
+ Jeep driver                 $  50,000
Total:                              $340,000
Policy will pay: $300,000
Amount you will owe: $40,000
Talk to a Ryan Everet client advisor and understand your options!
Note: We have found many clients that have lower coverage limits. The less coverage means the more you could pay!