Auto Insurance Liability Coverage: How to Stay Protected

Liability Insurance

Auto Insurance Liability Coverage: How to Stay Protected

How much liability coverage do you have? Do you have liability insurance? Auto liability insurance is a kind of car insurance coverage that is necessitated by law in most states. If you cause or you are accountable for a car accident, liability coverage helps to pay for the other person’s damaged property or medical expenses. There are two types of liability coverage for auto insurance: property damage liability coverage and bodily injury liability coverage. Drivers in almost all states are obliged to purchase both types of coverage.

Several types of insurance policies include liability insurance. Typically, liability insurance for drivers can help you pay for repairs for another person’s property damage or their medical bills if you are found accountable for causing the damage or injuries. Landlord Liability Insurance operates in a similar manner for landlords.

Bodily injury liability coverage, abbreviated as BI, helps pay for another person’s medical expenses if you are the at fault driver for an accident that injures them. This coverage will help you avoid spending your own money for the injured person’s x-rays and medical treatment.

Property damage liability coverage, abbreviated as PD, helps pay for repairs to someone else’s property damaged due to an accident you have caused. For example, suppose you have accidentally rear-ended another vehicle. In that case, this coverage can help prevent you from spending your own money to repair any damages caused to the other driver’s car.

Coverage Limits for Liability Insurance

The coverage limit is the amount your insurer will pay for a covered liability insurance claim, and it depends on the coverage limits you select. Each state sets minimum auto insurance coverage limits for bodily injury liability and property damage liability that all drivers are obligated to purchase. However, you may decide to purchase additional coverage. Typically, you may find three types of liability coverage limits on your vehicle’s insurance policy:

  • Property damage liability limit: This is the highest amount that your insurer will pay to repair the damage caused by you to another party’s property.
  • Bodily injury liability limit per person: This determines the highest payout amount for each injured individual in an accident for which you were accountable.
  • Bodily injury liability limit per accident: This determines the cap on the total amount that your insurer will pay for all medical expenses other people incur from a single accident caused by you.

Your coverage limits will be dependent on the packages your insurer offers. You may not be able to choose separate cap limits for property damage or bodily injury coverage.

How Much Does Liability Insurance Cost?

Your liability insurance premium is essentially based on the coverage you purchase. If your coverage limit is higher, your liability insurance premium will increase simultaneously. Based on your coverage limits, your insurance agent can inform you how much your coverage will cost.

How Much Liability Insurance Should You Buy?

Additional costs that exceed your liability coverage limits are your responsibility. You will need to incur the expenses for the same on your own. Increasing your liability limits above the state’s minimum requirements by purchasing more coverage is usually a good idea.

What is Not Covered by Liability Insurance?

Liability coverage typically does not pay for repairing damage to your own vehicle after an accident. Collision coverage can pay for this. It will also not pay to repair damage caused by other factors, e.g., hailstorms. Liability coverage also does not extend to paying for the expenses costs related to your injuries in an accident for which you at fault. Consider medical payments coverage if you wish to have this type of coverage.

Wondering how much your coverage limits are? Use this information to help you better understand how cost relates to liability insurance. If you’re looking for auto insurance at the best rates, contact our insurance professionals at Club Agency Insurance Brokerage, Garden City, New York, today. We can assist you with all your coverage needs and related queries.



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