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Liability Car Insurance Coverage – What You Need to Know

Liability Car Insurance is a recommend policy by all insurance companies out there to everyone who drives a vehicle. If you are at fault, your liability insurance coverage will cover the damages and bills to the other party in the accident. Liability insurance coverage has many parts to it and we will discuss those below. Since this is a required policy in almost every state, many customers try to cut corners and purchase the cheapest liability coverage that is required by their state. To most, that may be the best and most cost effective option based on their lifestyle and without proper understanding, that approach could be extremely costly for you if you were ever in a position where you would need liability insurance.

What are You Covered With?

Depending on your state and their requirements there are some liability coverage’s that you as a customer should definitely consider. Since it is a requirement, you should take the time if in the instance that you are in an accident and are deemed at fault, you would need Liability Car Insurance. There are two types of coverage’s that you should consider as a customer to ensure that you are covered. They are property insurance and bodily insurance coverage.

Property Insurance Coverage

When driving a car and hitting another vehicle or property, to be specific this is where property insurance would come in. This would cover any damages to property that you caused during the accident. Here are a few types of damages that are covered under property insurance policies for most insurance companies.

  • Damages to Property
    • Car
    • Home
    • Fences
    • Poles
    • Garages
    • & More

Property insurance coverage will be there to help you when you are in an accident and have damaged someone else’s property before the bills creep up on you.

Bodily Injury Coverage

Bodily injury coverage is available to help when you are at fault in an accident. This policy will assist the other party with their medical coverages and will extend out to any other people in the vehicle along with them

Here is an Example:

There are many scenarios that can play out when in an accident where you’re at fault and liability coverage needs to come into play. A traditional example would be:

You’re on your way home from work got caught up in your favourite song and do not realize how quickly you are approaching the car ahead of you and end up rear ending the vehicle. After you gain your composure you and the other driver step out the vehicle to access the damages. You speak to one another and see that there are significant damages, information is exchanged and an insurance claim has been opened.

In the example above, you are obviously at fault since you rear ended the driver ahead of you. Since you have liability coverage all the expenses being thrown your way will be taken care of. Take a breather you’ll be okay. If you are unaware of some of the expenses that are associated with an insurance claim here is a list:

  • Medical Bills – $10,000
  • Repair Bills – $12,000
  • Property Bills – $8,000

Suppose you have purchased $50,000 worth of liability coverage and have to make a deductible of $500. The total amount for the claim is $30,000. You will pay the deductible of $500 and your insurance company will cover the rest of the claim. Since the total amount of the claim is less than your coverage amount you will not have to pay anything out of pocket. Although, if your claim has surpassed your liability coverage you will have to pay the outstanding amount your insurance policy does not cover.

What You Aren’t Covered With?

In short, when in an accident, your Liability Car Insurance will not cover any of the damages or repairs that you have incurred from the accident. Depending on the situation and damages, there are other insurance policies that would be able to cover your vehicle.

If you are looking for an insurance coverage for your vehicle when you are at fault check out the following:

  • Collision Insurance
  • Medical Coverage Insurance

When speaking to your insurance company we highly recommend that when you are discussing your options so you opt for the most cost affordable yet the most coverage you can afford. It is almost always recommend to purchase insurance that is higher than the state minimum than trying to save money on your monthly payments. Make sure when choosing the right coverage you inquire about the deductibles and how they impact your monthly payments. There are many scenarios that can put you in a position where you are at fault in an accident, some of which may not be in your control. For example:

  • Hydroplaning
  • Sliding on snow
  • Black Ice
  • Brake Fail

These are just some of the situations that can put you liable in a situation.

Companies Offering the Best Liability Coverage

Please be aware, that this example is only intended for informational purposes and these are NOT the only costs addressed during a Liability Car Insurance claim. Nor are the costs accurate to any liability coverage. For more information and accurate details please contact your insurance company.