Auto Insurance – Liability Coverage
No matter where you live, work or play. You are required to carry a very minimum level of liability insurance. Liability insurance as it relates to Auto Insurance provides basic liability coverage that pays for damage you do to others — including bodily injury and property damage. It also pays for your legal bills if you cause an accident.
- Bodily-injury liability applies to damages you cause to someone else. It covers their medical bills and lost wages.
- Property-damage liability pays to repair or replace property that you destroy. This includes other cars or property, such as fences. It can also pay for “pain and suffering” damages if someone sues you after a car accident — but only up to your liability limits.
However, your financial responsibility may exceed your liability limits. If you cause $150,000 worth of damage and have an insurance limit of $40,000, you’re responsible for the remaining $110,000 and could be sued for it. The Insurance Information Institute (III) recommends you carry $100,000 of bodily injury protection per person and $300,000 per accident. Other insurance industry experts also recommend buying a minimum of $50,000 in property damage liability coverage.
No matter what the experts say. It’s a safer play to over insure and never need it than to under insure and wished that you had it. Especially given that the premium difference will be marginally higher.
In any-case its always good to shop around for the best Auto Insurance Coverage that best fits your needs. Remember cheaper does not equate to better. So thoroughly check the benefits of the proposed Auto Insurance Policy to make sure that you’re not missing some valuable and critical information.