Cheap Liability Insurance
Reader’s Question:
Could you explain to me why liability insurance must never be missed when looking for car insurance? (And I’m hoping it’s cheap liability 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.