Auto liability insurance coverage is required by financial responsibility laws in virtually all states. It is required before a motorist can drive legally. The amount of coverage required may vary from state to state. Having at least the minimum amount that the state requires is compulsory. The only question for all motorists is how much does liability car insurance cost and what amount of coverage should be carried.
Liability automobile insurance coverage is probably the most important part of your personal automobile policy because it covers the insured’s (your) greatest risk – liability to others. It provides protection for claims made when you are legally responsible for injury to someone else - or death - or cause property damage. Simply stated, it is coverage for damage to other drivers and/or passengers, including damage to the other person’s vehicle, as a result of that accident. The damage could range from backing into a neighbor’s mailbox to having a collision with a van filled with children. The potential dollar amount for which you could be responsible is astronomical.
Liability car insurance will cover medical and hospital bills and any loss of income due to inability of the injured person to work as well as pain and suffering. Pain and suffering is a common term used in injury cases. It is defined as mental or physical distress for which a person may seek damages in a lawsuit. It can also include mental and emotional damage suffered in the accident. Since this is a judgment rather than concrete call, it is incumbent upon all of us to have enough liability car insurance coverage to handle any judgment against us.
With current exorbitant medical expenses, claims could easily climb into the six figures and beyond. This liability insurance promises to settle or defend any claim or legal suit that may arise from a vehicular accident. It promises to pay defense costs incurred until the limits of liability have been exhausted. We live in a litigious society where attorneys advertise their ability to earn the injured large settlements. This insurance can help prevent financial disaster following an accident for which you are responsible.
Each state has a determined minimum amount of liability car insurance required for each motorist to carry. The minimum amount is far less than what you will need. The insurance industry recommends six to ten times amount of the required. For instance if your state requires 30/50/25, you will want to carry at least 250/500/150. This means $250,000 for each person and $500,000 per accident for bodily injury and $250,000 property damage. The prudent person will choose to carry high limits in order to protect his financial future and that of his family. This is a risk to which we are all vulnerable. Be advised to carry as large an amount as you can handle in order to minimize your exposure. The amount of coverage you choose will determine the liability car insurance cost.
Choose an insurance company that has high ratings and is financially sound. Check them out on the internet. Several sites such as A.M Best provide this information. Choose car insurance agents who can explain liability insurance and also will guide you through the other car insurance options needed to fully protect you. Be sure you know what you are buying and what your coverage is on each risk. You can arrange monthly to annual payments. Only those things listed in the policy are covered so assume nothing – see it in writing. Then get car insurance quotes from at least two more companies so you can compare. Get the best quote with a strong company.
The insurance company will issue a proof of insurance card to you when the policy is written. Carry this with you at all times. You will need to show this at the request of a police officer. And, if in an accident, you will provide that information to all involved. It is very important to have it on your person or in your car at all times. The penalties for driving without auto insurance are severe. It may result in your being fined, your vehicle impounded, and your driving privileges suspended for up to two years.
Do not drive without first being covered with auto liability insurance. Not only are you breaking the law, but you are exposing yourself to potential financial devastation. This coverage is mandatory. Choose an adequate amount of coverage. The liability car insurance cost will be worth it and more if you are in an accident. It will give you a great peace of mind just knowing you are responsibly protected. Drive safely. A good driving record can help you save money.