In the U.S. it is a legal requirement to have an auto insurance. And must be at least an auto liability insurance. But, do you know what does liability car insurance cover?
When we talk about car insurances, we need to have in mind that there are many types of coverages. And it is important to know what covers each auto insurance coverage. The more you know about the coverage, you will find it easier to decide.
What is liability car insurance coverage
An auto liability coverage is the minimum coverage requested for all drivers. Is like the most basic coverage. This type of coverage will cover the damages for the other driver’s property and bodily injuries. This means it will only protect third parties expenses, when you found at fault in a car accident.
Let’s say you get into a car accident, and you turn out to be responsible for the car crash. Then your auto liability insurance will pay for the damages made to the other car. In addition, will also pay for medical bills when the other driver needs medical attention.
What does liability car insurance cover
A liability auto insurance is executed by two types of coverages. It means it will cover two types of damages you made with your car. Each one has different coverage limits. You can choose your limits, but must be at least the minimums that the states require.
Bodily injury liability
What covers a bodily injury liability coverage? Is the one that covers the medical expenses, injuries and even death for the other driver.
In a car accident, it is important to pay the other drivers medical expenses. By medical bills, means any harm or wounds. It can also cover loss of income and legal fees in case you get sued.
Property damage liability
The property damage liability coverage will be the one that cover the vehicle damages. All the cost of repairing and replacing the other driver’s vehicle will be covered by this coverage.
It won’t cover the damages on your car.
Limits for liability car insurance coverage
Yours liability limits are also critical information to know. Your limits are the amount of money your insurer can pay. If the crash damages costs exceeds the limit, you must pay the remainder.
Good news are that, you can determine the limits you need for each coverage. There are three types of limits you must know.
Limits for bodily injury per person
This is the limit amount your insurance will pay for bodily injuries per person. You will be responsible to pay the exceeded amount on medical expenses or funeral costs. The minimum required in California is for $15,000.
Limits for bodily injury per accident
What does it mean, a limit per accident? It means the amount to cover the costs of all the people involved in the car accident. The legal limit per accident in California is for $30,000.
Limits for property damage
The property damage also has a limit. If you have a low limit or just the car you crashed with is too expensive, you must pay the remainder. In California, you must have a limit for damage to property of $5,000.
The minimum amount required by law is just a base and vary by state. It is common that car accidents costs are higher than that. That’s why you should never stay with the minimum.
When you set your coverage limit higher, your premiums will increase as well. Just try to keep a balance and find an affordable rate to be friendly with your budget.
What is liability only car insurance
Now, you have the knowledge of what does liability car insurance cover. If you choose a liability only car insurance, you and your car won’t be cover. If you want personal injury protection, you must add another type of insurance.
Personal Injury protection. With this coverage, your insurance company will pay for medical bills for you and your passengers.
Collision insurance. This coverage pays for your vehicle damages after a crash accident with another vehicle. If your car is a loan or lease, you will require this coverage.
We recommend a liability only car insurance just if you can afford the replacement of your vehicle.
You can also ask yourself:
How old is my car?
Is my cars value is very low?
Is it cheaper for me to pay my car repairs or replacement?
Then you can consider buying a liability only car insurance. If your insurance company value your car too low, it may not be convenient to pay a collision insurance. The reason, if they value your car low, they will give you less money to repair or replace your car. Otherwise, if your cars value is high, you should not just get an auto liability insurance.
We know that getting a full auto coverage can sound expensive, but with No DMV Lines you can get affordable rates. Get in touch with us and get a free quote for an auto insurance.
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