Those Insurance NUMBERS!! What do they mean??? (Part 1)

BIPD (Liability): This is what protects you, your family and your assets if you injure someone or damage their property with your vehicle.

It is what you are legally liable for. Usually it is expressed as three numbers such as 15/30/10 or 100/300/100.

The first two numbers are the amount in thousands that the insurance company will pay for bodily injury caused by you to someone else. The last number is the maximum they will pay for property that you damage such as another car or a light pole.

In the first example, 15/30/10, the most the insurance company will pay for one person injured in an accident is $15,000.

For more than one person’s injuries they would pay up to a maximum of $30,000, no matter how many people were hurt.

The third number, 10 in this example is up to $10,000 they would pay for property you damaged or the other persons vehicle if the accident was your fault.

States usually have minimum numbers, 15/30/10 in the case of Nevada. I would recommend that you look at higher limits than this.

I was badly hurt in a Moped accident just over a year ago. I was air flighted to a trauma center, spent two days in intensive care, and two days on the hospital trauma floor.

I broke two bones in my neck. There were luckily no surgeries needed.

The bill for my hospitalization came to over $100,000. If you had been driving, turned in front of me and caused that accident, that $100,000 would be your bill.

The third number, property damage is for damage you do to other people’s things. If you just have a fender bender you may be all right with $10,000 in coverage. But what if you total a Porsche, BMW, or Mercedes? I recommend no less than 100/300/100 for coverages.

Contact Mike today!

  • Phone:
    702-397-6622
  • Fax:
    702-397-6623

Tomorrow we will discuss your UI/UIM Uninsured/Underinsured Motorist…

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