Auto Liability Insurance
One of the most basic types of auto insurance coverage dealt with in many insurance policies is liability. Understanding liability insurance will greatly assist you in deciding the amount of coverage that will be needed to cover a loss for which you have a legal liability.
Bodily Injury Liability Coverage
Liability insurance can cover you in the event of an accident that involves bodily injury or property damage to another driver or passenger. State law often requires minimum amounts of liability insurance, but you are free to higher limits. Split limit policies split the amount of insurance that can be provided for each injured person. In the case of 25/50/10, $25,000 is the limit an injured person can receive; $50,000 is the maximum amount payable for each accident; and $10,000 is the most that can be paid by an insurance policy for property damages, defined below.
Combined single-limit policies provide a single amount, such as $100,000 max payable for bodily injuries and property damages, rather than a split one.
Property Damage Liability Insurance
If a driver’s property is damaged as a result of an accident you are at fault for, this type of insurance is what will cover the costs. The split insurance policies work the same way with property damage liability, as this insurance goes hand in hand with bodily injury liability coverage.
Required Minimums for Liability Insurance
Drivers are obligated by state laws in many states to have a set minimum of property damage liability insurance. You can save money on your insurance policy by choosing a low limit on your liability insurance, but the lower you opt for, the more risk you may be putting yourself and others at. Higher limits are normally suggested because the amount that an accident will cause cannot be predicted. Check with your state regulations to find out your specific requirements.
If you opt to pay less on your liability insurance, your insurance premium will inevitably be less. You should note, however, that your insurance company will pay less for damages and injuries should you get into an accident. You should do what is necessary not for right now, but for preventative measures in the event of an accident.
