The purpose of liability car insurance, often called liability coverage or simply liability, is to protect you from damages you are liable for, if you cause an accident. In all states, some minimum level of liability cover is required by law. It is vital for you to know what the auto insurance requirements in your state are, before purchasing your policy.
A typical liability auto insurance has two main parts. The first is concerned with injuries you may cause to other people and is called bodily injury liability. The second is property damage liability and takes care of damages you may cause to personal properties. The bodily injury part itself is divided into two components – an amount to be paid per injured person and a total amount to be paid for one single accident. Of course, these amount will be limited by the amount of cover you purchase.
Lets look at a particular example in order to make things perfectly clear. If you live in Los Angeles, the California auto insurance law will require you to purchase a minimum level of liability car insurance of 15/30/5. The first number represents bodily injury per person, the second per accident and the third personal property liability. Or in other words:
- $15,000 is the maximum amount your insurer will pay per injured person in an accident you have caused
- $30,000 is the maximum amount of liability your policy will cover per accident
- $5,000 is the maximum amount you will receive from your insurance company for personal property damages
One very important thing, which often causes confusion and you have to be aware of, is that liability auto insurance ONLY covers other people and their property. If you are injured in an accident or you damage your own car or property, you can not make a claim on the basis of your liability coverage. There are other types of car insurance coverage which are designed to deal with such claims and it is recommended that you get familiar with them.
Bodily Injury Liability Coverage
There are a number of bills and expenses, which will have to be paid if you are at fault in an accident in which others have been injured. Here are some of the types of claims injured parties can make:
- Medical help at the accident scene
- Medical expenses
- Loss of earnings compensation
- Legal fees for a lawsuit related to the accident
- Funeral expenses
Property Damage Liability Coverage
The property damage portion of your policy actually protects you against much more than damages you may cause to other vehicles. Structural damages, windows, fences, mailboxes and other stationary object are covered as well as vehicle replacement or repair costs.
Property Protection Coverage
Property protection coverage, also known as property protection insurance, is a type of coverage available only to residents of the state of Michigan. Together with personal injury protection (PIP), it is required by the Michigan No Fault auto insurance law. Property protection coverage can cover damages up to $1,000,000 regardless of fault.
How much liability car insurance should I purchase?
This is a very good question which most drivers ask themselves. As you can see, the mandatory car insurance limits in some states are quite low. Consider the cost of medical treatments and vehicle repairs, which have sky rocket in recent years. You will soon realize that if you cause a serious accident, these liability limits will only cover a small portion of all bills and expenses. In such a situation you may find yourself liable for thousands of dollars that you have to pay from your own pocket.
Everyone’s circumstances are different and only a qualified insurance professional can give you an accurate advice as to how much liability coverage you personally should purchase. Still, as a rule of thumb, always try and buy as much cover as you are comfortable paying and gives you a peace of mind.
Cheap Liability Auto Insurance
Lets admit it, we all want to find cheap liability auto insurance and pay as little as we can on insurance premiums. However, the real key is to try and find not just the cheapest policy on the market, but the most affordable one which still has adequate levels of coverage. There are countless instances where cheap insurance turns into an expensive nightmare. First, determine the liability limits you need plus any additional options like comprehensive coverage, collusion coverage or uninsured motorist coverage, and only then check which company can offer you the best deal. Remember, always use the same parameters when comparing quotes from different companies.
You can save yourself a lot of time and money if you compare car insurance quotes online. Our quick and simple online form can give you the freedom to choose the right policy for you in minutes. Its fast, easy and secure.
