What is the meaning of verbal limit in Insurance Coverage

| By Charu Garg

The term “verbal limit” is not one that is commonly used in the insurance sector when discussing insurance coverage. It’s possible that you’re referring to a particular term or clause that an insurance company uses.

As insurance terms and conditions can differ between insurers, it is important to note that it is always advisable to consult policy papers or speak with the insurance company directly for clarification.

Having said that, the term “limit” generally refers to the maximum amount of coverage available for a specific benefit or service when referring to towing and labor coverage in auto insurance.

For instance, if your auto insurance policy includes towing and labor coverage with a limit of $400, the insurer will pay up to $400 for towing and labor costs incurred as a result of a covered occurrence, such as an accident or mechanical failure.

Towing and labor (TL) coverage is another name for towing insurance. It includes labor costs at the breakdown location as well as a certain sum to have the policyholder’s automobile hauled to an auto shop.

Along with towing, towing insurance could also pay for services like tire changing, battery maintenance, lockout help, and petrol, oil, and water delivery. Towing exclusions apply to crashes or accidents that result in vehicle breakdowns. In this situation, towing costs would be covered by collision or comprehensive insurance. Despite being generally inexpensive, it might not be required. A policyholder might already have it as a benefit of their credit card or discover roadside assistance organizations like AAA to be more affordable.

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