If you own a car, you have to have car insurance.
In some states, the basic liability coverage is required just to obtain a driver’s license, even for non-owners. Some people view this as an imposition, but it becomes significantly important when an accident occurs. Who is at fault? Will there be a lawsuit? How much will it cost to fix the damage?
By taking a few minutes to understand the basics of auto liability coverage, online car insurance quotes become easier. This information is specific to “Tort” states that require the at-fault party to make things right. There are many reasons why it is important to choose higher amounts of liability coverage, but the following are the two most important.
Liability protects from out of pocket medical and damage expenses.
If a driver is at fault for an accident, they will be financially responsible to pay the medical bills and to fix or replace the car of the other party. Hopefully the at-fault party has a good insurance policy to provide the financial backing to this problem.
Bodily Injury Liability (BI) will pay the other party’s medical expenses directly related to their policyholder’s auto accident. This could include expenses such as emergency room, emergency transportation costs, hospital and doctor expenses, medical equipment, and ongoing therapy such as chiropractic and physical therapy.
Property Damage Liability (PD) pays the other party’s damages as a result of the accident. It could be vehicles, buildings, or other structures.
The insurance company will pay up to the chosen limits only.
Any costs over the limits will come directly out of the at-fault party’s pockets. If $25,000 is all the at-fault party chose for coverage, that’s the most the insurance will pay; the at-fault party is fully responsible for the remainder. The high potential that more than one person could be injured combined with the skyrocketing cost of medical care make it imperative to seek higher protection.
The amount of liability is the maximum amount policyholders can choose for Uninsured Motorists protection.
If liability limits of $25,000 are chosen, then the policyholder can only acquire $25,000 of their own medical protection from hit and run drivers who or those who have no insurance. However, by increasing to $50,000 in liability, the policyholder can choose to increase uninsured protection to $50,000.
Check your auto insurance quotes with the different levels of liability.
You may be pleasantly surprised just a few dollars a month can provide you with double the protection. It never hurts to start with the absolute best coverage and then take off unneeded extras to get your price in a good range. Use the liability coverage as the last one to reduce since it may be the difference between financial security and financial ruin. After all, it’s easier to come up with $50 for a tow than it is to come up with an additional $25,000 to cover medical costs.