Liability Auto Insurance

Reader’s Question:

Could you explain to me why liability auto insurance must never be missed when looking for car insurance? (And I’m hoping it’s cheap liability auto insurance, too.)

Walter

Tulsa, OK

Liability insurance is a type of coverage that protects your ass from third party liability. It is consisted of and covers mainly Bodily Injury (BI) and Property Damage (PD) when a driver is found at-fault and cited responsible for an accident and the damages arising from it. Property damage entails loss of property prior to collision while bodily injury, an injury sustained by both parties where the primary insured is deemed responsible. Your liability insurance coverage would cover all injuries and damages sustained by the third party up to your policy limits.

Going back to your other concern, you would never miss the opportunity of having this insurance policy for the fact that every vehicle owner of the state is required and mandated by the state government to carry minimum liability insurance. The required minimum may vary according to the state. Finding cheap liability insurance is an intimidating task because the state, as mandated by law, sets your required minimum or limits. However, rates may vary from one insurance company to the other depending on the state you are living in. Usually, for bodily injury the state requires at least limits of 25,000 dollars to 50,000 dollars, commonly in dividends of 25/50/25. An injured person is entitled of 25,000 dollars up to its policy limits but will not exceed 50,000 dollars (BI) bodily injury claims for each person. For (PD) property damage however, the state will pay up to 25,000 dollars for repairs but will not exceed that.

Reader’s Question:

Hi there! It’s my first time to get auto insurance. I just want to know something. How can liability car insurance protect me?

Louise

Gilbert, AZ

Auto insurance is limited by type and coverage. What this means is that you must not expect all your car problems to dissolve and be paid for just because you have obtained some kind of vehicle insurance. How each policy can help you depends on what type of policy you get and how much coverage you signed up for. Auto liability insurance, comprehensive insurance coverage, collision coverage, uninsured motorist coverage, personal injury protection – these are just some of the policies available out there. Each of them has a specific function and to each you may include insurance add-ons like GAP to upgrade your policy and make it fit your specific needs.

On to your question though Louise, auto liability insurance can only cover the damage to another vehicle or the injuries of another motorist as a result of your negligence. If you are found at fault in a car accident, liability coverage can help you pay for the damages you owe another motorist. You must also remember that it will not do so completely. You will have to spend some of your own money and how much will depend on what is called a deductible. So if you have suffered some injuries of your own or if your own car needs repairs, unfortunately your liability coverage will not help you with those. You will have to get a comprehensive insurance coverage to cover your own losses. It is more costly but the coverage is broader than the state minimum.

Reader’s Question:

How can I get cheap liability car insurance?

Vic

Philadelphia, PA

Cheap liability insurance shouldn’t be too hard to find as it is the state’s minimum required coverage for car insurance. The limits for liability insurance per accident in this state are $15,000 for the injuries or death of a single person, $30,000 for the injuries or death of more than one person, and $5,000 for any property damage. These are fairly low limits as liability insurance goes and sticking to them is one way of making sure you get cheap liability insurance.

Deciding how much liability coverage you’re going to get needs a careful examination of your situation. Liability insurance essentially protects your assets by covering the medical and repair damages of the other driver involved in an accident you caused. With liability insurance you don’t have to pay out of your own pocket. So it is essential to figure out the net worth of your assets. Some providers, for example, automatically set bodily injury at $100,000. If you think your net worth is only around $50,000, then buying that much coverage would be pointless. The same thing goes for property damage liability. How often do you think are you going to ram into somebody else’s home? Cheap liability insurance is easy to obtain, just make sure you stick to purchasing only what you really need.