Auto Liability Insurance – Part 1

Liability insurance is a part of an auto insurance policy that takes care of your legal responsibility to others for bodily injury or property damage and provides for legal counsel if needed. It is also your best tool to protect your assets and financial well being.

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The reality is no prudent person wants to have an accident, much less every plans to have an accident. After all, it is an “accident”.

If you did have an accident, you could pay that out of pocket, but the truth is, the average auto liability claim is about $24,000! As I said, you could pay that out of pocket, but an auto insurance policy is the most cost-effective way.

CLICK HERE for an overview of the auto policy

Personal auto insurance policies come in two variations: Combined Single Limits or CSL, which is not very common; more about that in a minute. The other and more common option is Split Limits Liability.

The more common option is split limits on an auto insurance policy in which the limits will be a series of 3 numbers which look something like this:




These numbers represent:

$100,000 Bodily Injury Liability per person

$300,000 Bodily Injury Liability per accident

$100,000 Property Damage Liability per accident

Regarding CSL or Combined Single Limits. The policies are the same except instead of the three separate limits. You have one limit that the enter claim is paid from regardless of whether it is for bodily injury or property damage.

Understand that these limits are the maximums that the policy will pay. If a claim exceeds your policy limits, you will be responsible for the claim payment balance to the person injured.

In the next article, I will talk about what is included under each of those coverage limits.

Here are some takeaways:

  1. The policy will take care of your legal responsibility to others for bodily injury or property damage
  2. It will provide a lawyer for you if needed.
  3. It is designed to pay on your behalf
  4. It protects you financially
  5. The limits are the maximums that the policy will pay.

I hope this helps some. Please check out the other videos in this series by going to our website and check out our Video Eduction Series, where you can find other videos and a link to the articles.  

Here at Reed Insurance, we have 4 goals:Ω

  1. Provide products and services focused on protecting our clients’ assets and financial well being. 
  2. Ensure that our clients understand the products and services they are buying.
  3. Pair our clients with products that fit their security and financial needs.
  4. Use our access to many insurance companies to keep these promises.

The important thing is that you discuss these options with your independent insurance agent and make sure you have an independent insurance agent who will educate you regarding your options.

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We’ll be glad to take a look at your insurance coverage in any of the states of Louisiana, Texas, Arkansas, and Mississippi.

Thank you,

Beaux Pilgrim, CEO

Dave Ramsey Endorsed


Beaux Pilgrim
Reed Insurance

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