What is Auto Liability Insurance?
In the majority of states, drivers are required to have auto liability insurance. If you are found legally liable for another person’s injury or property damage, liability insurance may assist in paying your medical and legal costs. If you are judged at fault in a vehicle accident, auto liability insurance can safeguard your finances. It can assist in paying for car repairs for accident victims or their medical expenses.
What Does Auto Liability Insurance Cover?
There are two types of liability insurance: property damage and bodily injury. If you are at fault for an accident, bodily injury compensation may assist with the medical bills of the injured party. In the unfortunate situation that you are sued, it could also assist with legal expenses. If you damage someone else’s car or property, this coverage helps with the cost of repairs. For example, if you reverse into another driver, liability insurance may assist you to cover costs of the auto shop so you are not responsible for the whole price.
What are the Limits of Auto Liability Insurance?
The coverage limits you choose determine how much your insurer will pay for a claim under your liability insurance. Drivers are required to acquire minimum amounts of bodily injury liability and property damage liability coverage, but you are free to purchase more.
Your auto insurance policy should include three liability coverage limits:
- Limit of responsibility for bodily harm per incident: This is the total amount your insurance will cover for all medical costs resulting from a single accident for which you bear responsibility. It is crucial to establish this limit at a level that seems appropriate for you as it could be required to assist in covering the medical costs of many individuals.
- Liability limit for property damage: This is the highest repair cost your insurance company will cover for harm you cause to someone else’s property. The maximum payment would not go above the amount you have allocated.
- Limit on each person’s culpability for bodily harm: This is the maximum compensation that will be given to each victim of an accident that you caused.
What is the Price of Auto Liability Insurance?
One factor that affects the cost of liability insurance is the amount of coverage you choose. The more liability insurance costs, the larger your coverage maximum should be. If you change your limit, your insurance should let you know how much your policy will cost.
A key question is, how do you decide how much liability insurance you need? Consider this: Any expenses that are more than the liability coverage limitations would be your responsibility to cover. As a result, it would be wise to increase your car liability limits above your state’s bare minimum.
What Exclusions Apply to Liability Insurance?
Accidental damage to your own vehicle tends not to be covered by liability insurance. For this type of damage, collision insurance would helpful. Repairing damage from hail would not be covered either. For this, you would need comprehensive coverage. Although liability insurance helps cover the medical expenses of someone you inadvertently hurt in an accident, it does not cover your own injuries. Depending on the state you reside in, you may want to consider medical payment insurance or personal injury protection.
