Importance of Liability Coverage
 

Liability car insurance is coverage that cover accidents which occur when there is an injury or damage to people and property, excluding your vehicle and passengers in your vehicle. There are three main sections to liability automobile insurance, the coverage limit per person, the coverage maximum coverage limit per accident. The limit for injuries to others differs from the limit for property damage of others.

Drivers in almost every State are required to carry certain minimum limit of liability coverage. The States do not impose requirements however to carry physical damage coverage for your car which includes comprehensive and collision coverage. Liability coverage therefore is lot of more important in the eyes of your state legislature and department of insurance. The states sees that one must be responsible for injuries and damages caused to another party. This law is very common and known as a Financial Responsibility, which comes with several penalties including civil and/or criminal.

The minimum insurance limits for liability vary by State. Some states such as CA has a liability limit of $5000 per person, and $15000 per accident or occurrence, where AK has a minimum limit of $50,000 per person and $100,000 per accident or occurrence for injuries.

The property damage limit also vary greatly by each state. Keep in mind that even though state mandates these minimum limits, higher limits are always recommended. Even a minor accident can easily cost hundreds of thousands, where you'd wish you had carried higher amounts of insurance.

Having liability coverage is not a voluntary protection, but a requirement. Except in cases where you increase your limits of course, that means you care about having more protection and you're concerned about not having enough coverage. Car insurance liability also pays for cost of defense in courts in case of any litigation process. As long as your policy was in effect at the time of the automobile accident, your insurance company will protect you in court against any personal liability usually. Except in a situation where your coverage is not enough to cover what you're being sued for. In such case your insurer would pay up to limit cap, and you would be responsible to pay the rest of the damages out of pocket. This is usually done in a form of judgment, where you have the chance of making different paying arrangements with the suing party.

As you can see, protecting yourself with enough liability coverage can ensure great peace of mind. Don't be a typical customer who just think of saving money by carrying the bare state minimum, but instead think of protecting your family and your assets against unexpected lawsuits.
 

Read More Articles