Liability automobile insurance is one of several areas in an insurance policy where it’s possible for a driver to have an impact on the cost of the policy. While a driver can save money on liability automobile insurance it’s important to understand the impact of decisions to raise or increase the level of liability insurance or you should know whether to accept this type of insurance or not.
What is Liability Automobile Insurance?
The amount that an auto insurance policy will pay out in a claim is spelled out in the levels selected for liability automobile insurance. This coverage is divided into three parts with separate limits for each section. The first figure is to pay for bodily injuries for one person in an accident. That’s followed by the amount to pay for all injuries in an accident. The final figure covers all property damage in an accident. therefore it is equally important to consider the possibilities of non owner insurance policy too.
Are State Minimums for Liability Automobile Insurance Important?
All but two states in the country have passed laws requiring that motorists have, at the least, certain minimum levels of liability insurance. Those figures are generally low, such as $25,000/$50,000/10,000. It’s important to know the state limits to make sure your policy follows the letter of the law. Most insurance experts recommend liability limits that are much higher than the limits mandated throughout the country.
How to Decide on Levels for Liability Automobile Insurance
Adopting the minimum liability limits for your state is one possibility and knowing what is rental car insurance an another. However, it’s important to remember that most insurance experts recommend limits of at least $100,000/$300,000/$100,000 for liability automobile insurance. If you decide instead to go at or near the state minimum to save money, be aware that you could be creating problems for yourself. If you are at fault in a serious accident and the liability automobile insurance you have isn’t enough to pay all the claims, you can be sued personally for any additional damages. Let’s say 3 people are injured in the accident and their bodily injury claims total $450,000. If your policy maximum for bodily injuries is $300,000, then the people injured in the wreck you sue to claim any valuable property you have.
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