Most people and businesses might not truly understand what their auto insurance is like until a claim needs to be made. When an accident occurs, you may become painfully aware of how great or minimal your hired non owned autocoverage is. One thing that can really throw a wrench in the works is an aggregate limit rearing its head. Understanding this type of limit is the best way to determine whether or not it is for you.
What is an Aggregate Limit?
An aggregate limit is a combined limit of all the claims made to your auto insurance. In other words, each dollar amount of each claim is added together. Once your dollar limit—as determined by your policy—is reached, the insurance company no longer pays, and you are left to cover the rest of the costs till your current policy expires. The limit usually resets at the start of your next policy period.
Breaking the Limits
Aggregate limits may be fine if you and your employees do not get into accidents. If such a limit worries you or your staffing firm, probably the best way to beat it is to select a policy that has no aggregate limit.
The right hired non owned auto liability policy may come without an aggregate limit. Talk to an insurance agent today about aggregate limits and how it might affect your staffing firm’s insurance claims.