I have an 11 yr old child and I’m wondering if I have to include him in my policy as a liability. Can you tell me the requirements for liability insurance in Texas?

Allain

Houston Texas

Requirement for full coverage insurance will vary depending on what state you are from. Let’s say you’re in Texas, the state requires you to have liability insurance. In some cases if your vehicle is not fully paid, you will be required to have collision and comprehensive coverage. In this case you will be covered for damages and injuries, other damages that is included in your policy will be covered as well. In the state of Texas, minimum coverage amount increased to $25,000 to injuries incurred to a person and damage to properties so that will be a total of $50,000 per accident, before it was only $20,000 for injuries incurred to a person, $15,000 for damage to properties and $40,000 per accident.

The coverage amount may not be enough especially if you will be help responsible for an accident. You may want to think about getting more that the minimum limit. Always remember that you will be given an insurance card or proof of insurance when you buy an auto policy. You will need this card or proof of insurance once you get into an accident, register your car or just renew the car registration, getting a new driver’s license, getting your car inspected or if asked by a police officer.

Every state has its own penalties if you violated the state’s financial responsibility law. If it’s your first conviction the fine could be from $175 to $350. After the first conviction and you will be cited again the fine will increase from $350 to $1000. This could also result to suspension of driver’s license or impoundment of your vehicle.

Everybody in your household should be included in your policy. You can check with your insurance company their definition of a household member or who is required to be included in your policy

My car was stolen. I have liability car insurance coverage. Will it cover?

Michael

Houston Texas

Liability car insurance coverage generally consist of Bodily Injury Liability and Property Damage Liability. Neither of those coverage cover your car if it is stolen. It covers those that you may damage, not your own car in any way.

Bodily Injury (BI) Liability insurance covers other people’s bodily injuries or death for which you are liable. This covers medical bills, loss of income or pain and suffering. Bodily injury liability covers people you injured in an accident, not your vehicle.

Property Damage (PD) Liability insurance on the other hand covers you if your vehicle damages someone else’s property. This may also provides you with legal defense if another party files a lawsuit against you.

If you want your vehicle to be covered in case of theft and other event other than collision, you will need to get Comprehensive coverage on it. Comprehensive insurance coverage provides protection in case of:

• theft
• damaged by flood
• fire
• animals etc

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.

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

Louise

Gilbert, AZ

Vehicle 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. Vehicle 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–vehicle 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.

How can I obtain cheap liability 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.

I am quite unfamiliar with insurance matters. What are the requirements of liability auto insurance in Baltimore, Maryland?

Troy

Baltimore, MD

The streets of Baltimore are ranked second most congested in the country next to Washington D.C. This essentially means that the odds for accidents are very high. And as such, the federal government requires much higher auto insurance coverage to effectively protect its residents from serious financial losses after an accident.

Liability insurance has to be 20/40/15. $20,000 pays for the medical expenses of one person, $40,000 for hospital bills if there were two or more passengers in the other motorist’s car, and $15,000 to pay for all destruction to property. Additionally, MD requires that Uninsured/Underinsured Motorist Insurance be obtained by every driver. This insurance also has to adhere to the 20/40/15 coverage just like the liability auto insurance. Personal Injury Protection (PIP) is another obligation even if MD does not follow the no-fault law. PIP should be at $2,500 for each individual listed in the policy. Some elect to obtain just the minimum levels of PIP because they have an excellent health insurance plan. Although this will definitely be allowed, just remember that any lost wages will not be provided by your health insurance. In the end, the best rule to follow when buying auto insurance is to get as much protection as you can afford.

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

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

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

What is the automotive 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