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Mexican Insurance - Easier To Understand Than You Think!

I often find that confusion lingers over the application and definition of two different types of Liability Limits, even among insurance salesmen with a great deal of experience. I often see agents advising buyers to avoid of Split Limits, as if there is something to fear after the deal is made.

In fact, this is not true. Split limits or CSL (combined single limits) are both legitimate choices, depending on the situation. This depends on what the actual amounts of the limits are, and not just how they are applied in any particular loss.

Combined single limits of $50,000 to $100,000 can apply to either property damage or bodily injury. This is the maximum amount the insurance company will pay for covered damages you are shown to be responsible for. So, for example, if your limit is $50,000, you're covered for a maximum of $50,000. If your limit is $100,000, then your maximum coverage for either exposure is $100,000.

A liability loss can be either all Property Damage or all Bodily Injury or a combining of the two. However, depending on which coverage limit you decide to purchase, the maximum amount covered is either $50,000 or $100,000.

Split Limits such as $100,000 bodily injury per person/$300,000 bodily injury per accident/$100,000 property damage means that the insurance company is obligated to pay up to $300,000 in bodily injury claims depending on how many persons are injured & the extent of their injuries AND up to $100,000 in property damage.

So Mexican Insurance fans, which would you rather have, A. $50k CSL or B. Split Limits of $50k per person/$50k per accident and in addition $50k Property Damage? See my preference at the bottom.

In Mexico, you might be in an accident with someone else's brand new SUV, so we suggest that you carry a minimum limit of $50,000 for Property Damage Liability.

In this example I choose B because I have up to $50,000 in BI coverage AND up to $50,000 in PD coverage. This also ensures that you have total coverage of $100,000 instead of $50,000, which gives you more protection.

If you are unsure or confused about any of this, be sure to contact your personal legal advisor or financial professional. The information and example I have provided above is simply meant to be used for common education purposes only.

Article Source: http://www.uberarticles.com/articles

Linden Gray is an international insurance veteran with 29 years of commercial & personal insurance experience. Mr. Gray has been featured in numerous periodicals including RV Magazine, PE.com, Google, Yahoo, Digg & Buzzle. Visit his website at: car insurance for mexico. Click here to get your own unique version of this article.

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