Liability Limits & Transferring Coverage

Liability Limits by State

**Virginia's minimum limits are changing to from 30/60/20 to 50/100/25 for Renewals and New Policies effective 01/01/2025 or later. 
*Georgia - This is the lowest limit that Elephant can offer. Do not advise this is the state minimum.

Income Loss in VA

Income Loss is a separate coverage in VA. It covers a customer when they are injured in a covered loss and are excused from work by a doctor. The coverage will apply if the customer is employed at the time of the accident. 

• It will provide $100 per week, but for no more than 52 weeks.
• If multiple vehicles are on the policy, it can be multiplied up to a maximum of four times.

*Georgia State Minimums

Elephant’s lowest liability limits are slightly different than the state minimums. This was a deliberate choice to make filing easier to maintain. We will have to be careful with our word choice!

We CANNOT say that we offer the “state minimum.”

We CAN say: 

• “I’ve set you up with our lowest limits.”
• “I’ve got you set up with our/Elephant’s minimums for liability.”

If asked..."Are these coverages the state minimums?"

• Elephant decided to set our minimum property damage at $30,000 to give our customers a little extra cushion.
• With the average cost of cars getting more expensive every year, we like to start our customers with $30,000 of PD instead of the state minimum of $25,000.

If asked..."Does that cost more?"

• Since we don’t actually offer a rate for lower property damage, and I wouldn’t have information on other companies, I wouldn’t be able to speak to that. 

State Maximums

State Maximums are blocked online, so a customer cannot bind without chatting with or speaking to an agent. They will be shown a banner saying the selected coverage is not available, but they can choose a different option to move forward. Offer a partner carrier for customers who want the maximum liability coverage. 
If a customer wants to continue with the highest coverage, we will need to email underwriting and wait for them to notate approval before binding. Once we get approval, we can bind with the maximum coverage. 

Bodily Injury 

Bodily injury liability pays, up to your policy limits, for injuries or death that you (the policyholder), or other drivers covered by your auto insurance policy, are found responsible for after a motor vehicle accident. Examples of what bodily injury will cover include:

• General Damages: Pain & suffering, mental anguish, & loss of consortium 
  
• Special Damages: Measurable dollar amounts of actual loss (bills, work loss, etc.)

When quoting online, customers will not be able to choose 500/500 and will be prompted to call in if this level of coverage is required. There is no further action needed. We can continue to raise the limits while asking the correct probing questions if extra coverage is added i.e. "Has there been any damage, vehicle in running condition" etc. 

Who does bodily injury cover? 

• Third Party (Claimant) Drivers 
• Passengers
• Pedestrians 
• Bystanders in some states 
• Passengers in insured vehicle 

 Bodily injury liability does NOT cover your injuries – it covers only the injuries of others that you are liable for. 

 The per-person limit for bodily injury is the maximum amount that will be paid for any one person who sustained bodily injury as a result of an auto accident that the policyholder is liable for. The per accident limit is the maximum total amount that will be paid for all injuries resulting from that single auto accident.

Property Damage

Property damage liability pays, up to your policy limits, for damages to someone else’s property that you (the policyholder), or other drivers covered by your auto insurance policy, are legally liable. Examples of what property damage will cover include: 

• Physical injury to, destruction of, or loss of use of tangible property
• Posts, signs, trees, fences, mailboxes, guardrails, buildings 

This coverage also provides you with legal defense if another party files a lawsuit against you regarding property damage from an auto accident.

Property damage liability does NOT cover damages to your vehicle—to have your vehicle covered, you would need collision and comprehensive coverage. 

The per accident limit for property damage is the maximum amount that will be paid for all property damage resulting from any one auto accident.

Liability Exclusions

The following are reasons why we may deny liability coverage:

• Intentional damage 
• Property Damage to your own property 
• Livery conveyance (Uber, pizza delivery, etc.) 
• Selling, repairing, servicing, storing, or parking vehicles used mainly on public highways 
• Use without permission 
• Vehicles with less than four wheels designed for mainly off-road use 
• Vehicles other than your covered auto
• Racing 

This list is not exhaustive! 

Out-of-State Coverage

If an auto accident happens while traveling out of state with your vehicle, if the state or province specifies higher limits of liability than what you carry, you will be provided the higher liability limit. Otherwise, you will be provided at least the required minimum amounts of required insurance that the state or province mandates.

Example: 

 You're an Ohio policyholder traveling into Virginia when you have an accident. Since VA has higher BI minimum limits than OH, you will be afforded those higher limits ($30,000/$60,000 vs. $25,000/$50,000). 

 However, the PD minimum limit is higher in your home state of OH than in VA, so you will still have access to your full $25,000 PD limit when traveling through VA. 

Coverage Outside the US

Coverage Extending to Canada (Yellow Cards)

Elephant covers customers driving anywhere in Canada. Yellow cards are no longer needed as of May 2024, but the customer should carry hard copies of the items listed below instead:

• Auto Insurance Policy
• Proof of Insurance ID Cards
• Current Vehicle Registration
• Current Auto Insurance Declarations Page
• US Driver License

Assure the customer the Canadian Yellow Cards are no longer needed.
If the customer insists on getting a Canadian Yellow Card, please chat with an agent to request a hard copy to be sent by mail within 7-10 business days.

If the customer then indicates the request constitutes an emergency, please chat with an agent to request a card to be emailed to the customer. 

If the policyholder is driving a rental vehicle in Canada, the rental company is responsible for issuing the yellow card.

Why Did Canada Need a Yellow Card?

If an insured is involved in an accident or stopped by a police officer in Canada as a result of a traffic violation, they will be considered by Canadian authorities to be driving in Canada with the appropriate amount of liability insurance. Though not required in every province, a U.S. driver can prove to the police that his or her insurer has filed for this by presenting a Yellow Card.

Coverage Extending to Mexico

• Indiana and Tennessee: Coverage will not apply to an insured vehicle.

• Virginia: Coverage will apply to an insured vehicle within 25 miles of the border.
• Illinois, Texas, and Maryland: Coverage will apply to an insured vehicle within 75 miles of the border.
  
  
• Only comprehensive and collision coverage will apply to physical damage in Mexico. There is no coverage for liability or additional coverage.
• The named insured must stay no longer than 10 days.
• If a customer is driving further than the above limits, they will be required to purchase temporary insurance from the country of Mexico (this is often offered at border security).

US Territories

Coverage is US Territories is the same coverage as it is in US states.

Coverage transfer to a rental vehicle

When a customer rents a vehicle, some or all of their Elephant coverages might transfer to the rental vehicle for a max of 30 days. Coverages only transfer while the vehicle is being operated by a driver insured on the policy. 

If the customer is renting for pleasure, the broadest coverage transfers.

If the customer is renting due to an accident/claim, the coverage of the specific vehicle being replaced transfers. 

What does the broadest coverage mean? This means the best or highest level of coverage available on the policy.

Example: Customer's policy has two vehicles: one with just liability and one with comp/collision. When they rent a vehicle for pleasure use, liability and comp/collision will transfer, since that's the highest level of coverage available.  

NOTE: Roadside Assistance and Rental Reimbursement do not transfer to the rental vehicle. 

General Guidelines

Vehicles  

• The rented vehicle must be acceptable under our UW guidelines

Timeframe

• Coverage will only transfer to a rental vehicle for a max of 30 days. After 30 days, coverage would no longer apply. A customer can turn in that vehicle and rent a different vehicle to restart the 30-day window.

Extra Coverages 

• Purchasing extra coverage should always be up to the discretion of the customer 
• Customers may avoid a deductible if they purchase insurance through the rental company

Claims/Accidents 

• Per the contract, if the vehicle being rented (for either pleasure or due to a claim) is damaged in an accident, we may not cover administrative fees, loss of use charges, etc.

In Canada 

• If the policyholder is going to be operating the rental vehicle in Canada, the rental company is responsible for providing them with a Canadian Yellow Card. Yellow cards are no longer needed as of May 2024, but the customer should carry hard copies of the items listed below instead:
  • Auto Insurance Policy
  • Proof of Insurance ID Cards
  • Current Vehicle Registration
  • Current Auto Insurance Declarations Page
  • US Driver License

Test Driving Vehicles at the Dealership

Typically, the broadest coverage on the policy will transfer to the vehicle the policyholder is test driving at the dealership. The vehicle must still be acceptable under our underwriting guidelines.