Liability Car Insurance Coverage Explained
When you are buying auto insurance, one of the only required coverage options that you must purchase is liability. Liability insurance is required by all states, to ensure that drivers are financially responsible on the road and can afford to cover the damages and pay for the injuries that they cause while they are behind the wheel. When you purchase an insurance policy, understanding how liability coverage works before you are in a situation where you need to file a claim is important. Here you will find out what makes up liability insurance and why selecting the right coverage limits is so important.What is Liability Insurance?
Without liability insurance, paying for the damage that you cause in an accident can cause financial hardship. This is why liability insurance is not only a requirement, it is also the first line of defense against paying for damages that you are negligent for out-of-pocket.
Liability insurance consists of two different coverage options: bodily injury and property damage. All drivers must carry both options to satisfy state laws and to avoid being penalized or fined by both state courts and the Department of Motor Vehicles. While liability insurance pays to protect the policyholder, up to the limit stated on the insurance contract, it will not pay for damages that you incur as the negligent driver. Liability insurance will only provide monetary compensation to third-party drivers and passengers who sustain injuries and also to repair or replace property that is damaged as a result of the accident that you were deemed at-fault for.
Bodily Injury Coverage
Bodily Injury, which is also often labeled as BI, will pay to cover injuries that are sustained by other drivers and passengers when you are 51% or more at fault for the accident. BI is broken down into two different limits: per person and per accident. If you carry $15,000/ $30,000, your coverage will pay up to $15,000 per person and up to $30,000 total for the entire accident, no matter how many people were injured. None of this coverage will be used to pay for your injuries or the injuries of passengers in your vehicle.
Property Damage Coverage
Property Damage coverage, which is also labeled as PD on auto insurance quotes, will pay to cover the damage that is caused to third-party vehicles and other objects that the policyholder does not own. While the most common Property Damage claims that are filed are to pay for damage sustained to a third-party vehicle, this coverage will also cover fences, rails, trees, gates, and light poles as well. In a quote, the limit that you choose is the total amount that will be paid per accident. If you choose $10,000, this will be the total amount paid to repair any type of damage that occurred during the incident.
If you do not have enough coverage to pay for the damage or injuries you cause, the injured party does have the right to file a civil lawsuit against you. This is why selecting the right limits when you are comparing car insurance quotes is so important. Take time to build the right policy and select adequate limits that will protect your assets.
Smart Tips For Auto Insurance Policies Shoppers
Smart Tips For Auto Insurance Policies ShoppersAt one point or another in life we are all required by law to do things we dislike. In this article we won’t cover how to do your taxes but we are going to give you a few tips that you can use in order to get a more affordable auto insurance policy price!
PAY AS YOU DIRVE
These programs are a revolution on the market as they are a complete different and personalized method of calculating auto insurance policy prices for drivers. The drivers that get the biggest discounts here are the ones that are considered to be high-risk clients by traditional methods of calculating these prices
LOWERING MILAGE
One old fashion tip that still works surprising well for getting a better deal on auto insurance. All that is needed find an alternative way of transportation when your car is not absolutely necessary. Bus, public transport, bike or even walking if the distance is not too great is all good alternatives to driving
USING DISCOUNTS
Not too many people take full advantage of the auto insurance policy discounts that are offered by just about every insurance company on a highly competitive market. In order to be fully aware of the discounts you are entitled to you will have to do some homework or simply call up an insurance agent to make you a list of discounts you can apply for
SHOPPING AROUND
Really old method that still works wonders and probably has the biggest impact of all of these combined! It’s very easy to do now that we live at an internet age and a simple 40 minute search can literally save you hundreds of dollars!
Discounts — the sneaky thing that way too many auto insurance companies still do is to NOT let you know what kinds of discounts you are qualified to receive. Before you sign a contract with your auto insurance policy provider be very clear about their discount policies and make sure to check if any of those apply to you as this is usually the case. Also every year that you re-new your policy re-check this as by now you might even be qualified for more of them
Originally published at https://www.insurancexo.net on January 4, 2021.
