What is the “Limit of Insurance”?

Insurance is always a little bit tricky to understand and when it comes to auto insurance it certainly is no different. For example there are typically 13 exclusions in a Business Auto Policy that should always be understood, however, at the end of the day regardless of the number of covered autos, insureds, premiums paid, claims made, or vehicles involved in an accident the most the insurer will pay on any auto policy will be the limit of insurance shown on the declarations page.

One thing to note is to always be sure that you are comfortable with your limit of insurance as this is the bottom line of what your auto insurance will pay when everything is tallied up.

Category: Auto Insurance