Liability Auto Insurance

Reader’s Question:

In Florida, I hit a guy on bicycle who came out of nowhere; do I get liability auto insurance coverage for this?

Monique

Miami, FL

Florida observes the no fault law. This means that in a road accident, regardless of who was responsible, the individual’s auto insurance carrier will shoulder the medical and hospital bills following the accident provided that the costs are within the specified limits of the coverage. In no fault states, this type of coverage is often known as the Personal Injury Protection (PIP) insurance. Florida requires its residents to be covered by at least $10,000 at the time of the accident and this qualifies the policyholder for this much financial assistance for any medical care, loss of wages, or funeral and other death benefits. So, in this case where you hit a guy on a bicycle, his auto insurance company, either his health or car insurance provider should cover him for his injuries. However, if the other guy decides to sue you, then you may be in for a tough one especially if the other guy sustained serious injuries. The other guy will also have a very strong case against you if the reason for his accident was due to an evasive action he had to take to avoid getting hit by you. If this happens, then you can only hope that you have liability auto insurance coverage, and that it will be enough to pay for all the damages the other guy wishes to collect.

Tags: auto insurance coverage, liability insurance, no-fault

Reader’s Question:

My car sustained considerable damage after hitting a roadside rail because of snowy roads. Will my liability auto insurance here in New York pay for the damages?

Will

New York, NY

New York is a no fault state. Essentially this means that the state’s financial responsibility laws require its resident motorists to have Personal Injury Protection (PIP) coverage of up to $50,000. Personal Injury Protection is also interchangeably used and referred to as no fault insurance because in all no fault states PIP is always the first insurance requirement. After PIP the state also makes it compulsory for its drivers to have liability auto insurance.

The minimum liability auto insurance for the state of New York is pegged at $25,000 for bodily injuries to one person, and up to $50,000 to all passengers, and a minimum liability for property damage of $10,000. In your case, if your accident just so much as dented or scratched the roadside rail, then your liability auto insurance could be made to pay for the damage to this public property. On the other hand, your Personal Injury Protection (PIP) should pay for your medical and hospital bills in case you sustained any injuries in the car accident. The state does not require collision and comprehensive coverage, but if you were prudent enough to get one and it was in effect at the time, then your auto insurance company should be able to help you out with the expenses you will incur to have your car repaired.’

Tags: Car Insurance Company, car insurance law, liability insurance, no-fault

Reader’s Question:

Does the State of North Carolina have any law regarding auto insurance requirements?

Caitlin

Charlotte, NC

Any auto insurance company registered to do business in a state is obliged to follow that state’s financial responsibility laws. These laws are the basis for the minimum requirements auto insurance companies will offer to sell to prospective policyholders.

Following North Carolina’s financial responsibility laws, it is then mandatory for every motorist residing in that state to have minimum liability. Liability insurance pays for the damages the other motorist sustained due to an accident you caused. In North Carolina, minimum liability has coverage expressed in these numbers: 30/60/25. This translates to $30,000 for the other motorist’s medical and/or hospital expenses, a ceiling of $60,000 for medical and/or hospital expenses for all passengers in the other motorist’s vehicle (including the driver), and $25,000 repair or replacement costs for the other motorist’s vehicle and other property damages. This includes public property wrecked by the accident.

Not required by highly recommended is collision and comprehensive insurance. This will pay for damages to your own vehicle and sometimes, depending on the limits of the coverage, extends to personal property. Another type of insurance worth considering is Personal Injury Protection. This takes care of your medical expenses and automatically kicks in no matter who was declared responsible for the accident. It’s a quick and convenient way to receive benefits without having to wait for litigation proceedings. Finally, there’s uninsured motorist insurance. Although it’s also non-compulsory, this type of coverage acts as a safety net in case you get into an accident with a driver who doesn’t have any auto insurance at all.

Tags: car insurance law, collision insurance coverage, comprehensive insurance coverage, liability insurance

Reader’s Question:

What is the auto liability insurance requirement here in Colorado?

Alex

Denver, CO

The Colorado Division of Insurance (DOI) states that all vehicle owners in Colorado must have auto insurance. The requirement mandates that drivers to be ready to show financial protection in case they cause damage to another person or property in the future. This is discussed in the Colorado Revised Statute 42-4-1409.

As stated in the statute, no owner shall operate or be permitted to operate a vehicle that has no certificate of insurance. This insurance must have coverage worth twenty-five thousand dollars for the bodily injury or death of one person, fifty thousand dollars for the bodily injury or death of two or more persons (in one accident only), and fifteen thousand dollars for property damage.

Auto insurance coverage beyond the said minimum may be availed, as well as additional coverage such as physical damage and uninsured/underinsured motorists.

If you are driving in Colorado, you must be sure that you are carrying auto insurance with the right coverage because noncompliance could cause you multiple penalties. If you are cited for driving without auto insurance for the first time, you will be required to pay a fine worth five hundred dollars and you will have 4 points in your motor vehicle record (MVR). A second citation would require a minimum fine a thousand dollars and suspension of license for 4 months. For the third citation, you would be required to pay a minimum fine of $1,000, suspension of license for 8 months, and community service.

Tags: auto insurance coverage, driving without insurance, liability insurance