So what is automobile liability insurance? Liability is an important component to any car insurance policy. This kind of coverage is basic and helps insure you against the monetary obligations following an accident if you are found at fault. Drivers are legally required to obtain at least the minimum liability insurance as directed by state law.
What Does Liability Automobile Insurance Coverage Do for You?
Liability insurance can be divided into two categories:
- Bodily Injury Liability: Covers medical expenses, pain and suffering, lost wages, and other special damages.
- Property Damage Liability: Covers damaged property, possibly including loss of use.
For example, in the event that a car is dented in a parking lot or a car crash victim sustains a neck injury in a more serious accident, this coverage helps pay for the damages. The insurance money can also be put toward covering your legal defense fees and court fees in the event that you are sued.
Unfortunately, in many cases, the minimum coverage required by state law isn’t enough to cover all of your expenses. Bear in mind that insurance policies will only cover drivers up until the liability limit they choose. For example, if your liability limit is $10,000, then your insurance company will only cover you up to this amount. Legal minimum requirements are just that, the bare minimum.
Choosing the Amount of Coverage that Is Right for Me
What does liability auto insurance cover? While the state requirement helps insulate a driver against monetary penalties, many drivers prefer the peace of mind that comes with additional coverage. You might be happily surprised to find that raising your auto liability coverage is oftentimes not as costly as most think.
It is usually a good idea to work with a trusted insurance agent that understands your budget requirements and personal needs. However, most insurance professionals agree that the 100/300/100 liability limits are best for the average driver.
What this coverage means in English, is the following:
- Coverage up to $100,000 for bodily injury per person
- Coverage up to $300,000 for bodily injury per accident
- Coverage up to $100,000 for property damage per accident
While purchasing the minimum for liability insurance can be cheaper, take into consideration the intangible cost of peace of mind. With hospital fees, lawyer fees, and court fees being as expensive as they are, you’ll be happy to know that your own, personalized, insurance policy will be there to cushion the blow.
Many insured drivers consider additional coverage in the form of umbrella insurance policies. It is designed to give the insured individual added liability protection above and beyond the limits of their homeowners, auto and watercraft insurance policies. Depending on the insurance company, policy-holders can insure themselves for an additional one to five million dollars in liability protection. Umbrella coverage kicks in when the insured has exhausted the coverage from their other insurance policies.