If you own a vehicle or plan to get it, you may have already heard about liability insurance. It is a rather popular type of coverage that offers financial security and protection if a person is found legally responsible for an accident that causes property damage, death, or injury.
Liability car insurance typically applies when someone else is driving your vehicle and causes an accident. In most states, drivers are required to have a minimum amount of liability coverage.
Liability insurance will cover property damage and medical costs incurred by injured parties if you are at fault for a collision. Even though the policy specifics vary among providers, it usually comprises two types of coverage:
Liability insurance has three categories of coverage limits:
Example: 25/50/25 means $25,000 is the limit in bodily injury coverage per individual, $50,000 – in bodily injury per collision or accident, and $25,000 – in property damage per collision.
You may also come across insurers offering only a combined single limit (CSL) policy. For instance, you may get a single coverage of $300,000 instead of multiple smaller amounts. Such a policy might be helpful if you need a particular type of coverage with increased limits.
If you are interested in additional coverage, consider using comprehensive coverage, collision coverage, and even Personal Injury Protection insurance.
Liability insurance only pays for injuries to other people and damages to their vehicles. In contrast, full coverage includes liability coverage and other kinds of coverage to ensure that your expenses are also covered.
Full auto coverage may include personality injury protection, comprehensive insurance, medical payments, and underinsured/uninsured motorist coverage. Full coverage is not required by law, but you may need it if you lease or finance your vehicle.
You will likely need some liability insurance to drive in the United States, although laws differ from state to state. But even if you live in a state where liability coverage is not mandatory, you might still need it if you lease or finance your vehicle.
An important factor to consider is the total value of your assets. Make sure you will be able to meet the financial responsibilities in the case of a collision.
Shop around to identify suitable liability insurance. Compare several major insurers to get the hang of it, and then evaluate each shortlisted option’s pros and cons. Alternatively, consult with a local auto insurance expert.
Oleksandr is an expert in deep research. He covers various insurance topics across verticals, adopting to every local law.
Date added: November 4, 2022