What is auto liability coverage?
责任 insurance is an essential part of almost every 汽车pp王者电子官网 policy.
In fact, drivers are required by law to carry it on their policies in nearly every state.
But, do you know what liability insurance is, or how it benefits you? Do you understand just how much you need? 国营农场® is 在这里 to help.
Get an auto insurance quote
What is liability insurance
What is liability insurance
责任 汽车pp王者电子官网, also known as liability coverage, helps pay for the costs of the other driver’s property and bodily injuries if you are “at fault” in an accident. Your insurer will pay for the property damage and injuries up to the covered limit.
What does liability insurance cover?
责任 汽车pp王者电子官网 falls into two categories. Each covers different items.
Bodily Injury liability coverage (BI coverage)
Bodily Injury liability coverage (BI coverage)
Pays for costs associated to injuries for which you are legally liable. This means that your actions caused injury to another person and you were found legally responsible for those injuries.
What type of bills does BI coverage pay?
- Medical expenses
- Pain and suffering
- 工资损失
财产 Damage liability coverage (PD coverage)
财产 Damage liability coverage (PD coverage)
Pays for damage done to another person’s or company’s property, as well as for the loss of use of that property. This means that your actions caused damage to property (a car, a house, a tree, etc.) and you were found legally responsible for those damages.
What type of bills does PD coverage pay?
- 车辆 repair
- Repair to the living room wall you crashed through
- Removal of the knocked over tree
- Defense and court costs if you are sued
为什么 should you consider more – rather than less -- liability insurance?
While most states require drivers to carry basic liability insurance, which offers the minimum coverage limits required by law, it’s a good idea to purchase higher coverage limits than your state requires.
为什么? Let’s say you were distracted while backing out of a parking space and you didn’t see a car behind you that happened to be driving by. And then you hit that car, slightly injuring the driver and her passenger.
After an investigation, you’re determined to be “at fault” for the accident. Your auto liability coverage will pay for the damage to the car you hit as well as for the medical bills (and other costs) from the injuries sustained by the driver and the passenger, including pain and suffering, lost wages.
If the damages you cause exceed the liability limits you have chosen, you could find yourself personally liable for all of the costs that exceed the amount your insurance policy can pay. If you’re unable to pay those bills, it could result in garnished wages, liens against your assets and even court fees.
To fully understand the difference between minimum liability coverage and the amount of coverage you may actually need, 联系 国营农场 agent.
What car liability insurance doesn’t cover
If you're responsible for an accident, your liability coverage won't pay to repair your vehicle, nor for injuries that you personally sustained. You’ll need separate coverages for these exposures, including collision coverage, comprehensive coverage, medical payments coverage.
个人 liability umbrella policies
T在这里’s another type of liability coverage that can protect your assets (and your financial future) in the event you’re in an accident: a personal liability umbrella policy.
Umbrella policies provide coverage above and beyond what your car liability insurance covers, especially if you’re the target of a lawsuit after an accident involving your car, 在家还是坐船.
Learn more about umbrella policies offered by 国营农场 by contacting an agent.
How much car liability coverage should you have?
The minimum amount of liability coverage you’re legally required to carry varies by state, the amount your premium may rise if you purchase additional liability insurance also will vary by state.
The premiums increase usually is smaller than you’d expect. And keep this in mind: your monthly premium with additional liability coverage is almost certain to cost you less than what you’d pay if you’re in an accident and not properly covered.
If you decide not to purchase additional liability coverage, you should ask yourself this: “How much can I afford to pay out of my own pocket if I'm responsible for an accident?"
Minor "fender-benders" are often fully covered by the liability coverage minimums set by your state. But it only takes one accident to disrupt life as you know it.
为什么 not further protect your family and assets by choosing higher liability coverage, at rates you can afford?
Talk to a 国营农场 agent
Got more questions about vehicle insurance?
Get answers about auto insurance
Browse numerous articles from Simple Insights on tips from what we’ve learned in the nearly 100 years we’ve been insuring drivers like yourself.
Does your 汽车pp王者电子官网 reflect your lifestyle?
Understand your insurance options so you can be as choosy about them as you are about your wheels.
3 reasons why auto insurance rates are going up
为什么 auto insurance rates are going up.
Car insurance deductibles: Choosing well
Learn what a 汽车pp王者电子官网 deductible is and how it affects your 汽车pp王者电子官网 coverage. Plus, tips on choosing auto coverages.
免责声明
This document contains only a general description of coverages and is not a statement of contract. All coverages are subject to all policy provisions and applicable endorsements, may vary by state. For further information, please see a 国营农场 agent.
国营农场 Mutual 汽车mobile pp王者电子官网 Company
国营农场 Indemnity Company
Bloomington, IL
国营农场 County Mutual pp王者电子官网 Company of Texas
理查森,TX