Anyone who has state minimum auto insurance has, at least some, liability insurance coverage. The raging debate is whether this minimally required insurance is adequate for the realities of an auto accident today – and what can happen to you if your liability car insurance is not up to the task.
What Liability Auto Insurance Is
First, you need to understand exactly what liability care insurance covers. Typically, you will have two different types of liability coverage, each with a dollar amount limit (total amount of coverage the policy offers). These include:
- Bodily Injury Liability
- Property Damage Liability
What this means is that if you are “at fault” in an accident, the liability protection will help to pay for the damage to property (cars, structures, etc.) caused by the accident or bodily injuries to others caused as a result of the accident. There is often a deductible (that is the out of pocket costs you must pay before the insurance kicks in) and limits for the total amount of liability protection your policy provides.
You are responsible for damages that go above and beyond the coverage limit, meaning that you can lose money, retirement savings, and even your home to make up the difference if your liability coverage is not sufficient for the judgment awarded against you in the aftermath of an accident.
What Liability Auto Insurance Is Not
It’s equally important to understand the things that are not covered by your liability insurance coverage. For instance, damage to your own vehicle or property is not covered by your policy. Also, your own injuries are not covered by your liability coverage. Liability coverage essentially protects other people from your actions behind the wheel or the actions of your vehicle. It also does not pay for the balance owed on your vehicle if you are in an accident and your vehicle is totaled, though most finance companies require you to have full coverage insurance (as well as gap coverage) if you owe money on your car.
For the most part, liability coverage is your friend as a driver. You need to make sure your liability coverage is sufficient, however. Working with a reputable independent insurance agency that understands your state and local laws will help you buy with confidence that you are getting sufficient liability protection to meet your needs on today’s hectic highways and byways.
Contact us here at BOLT Insurance Agency to learn more about your liability insurance coverage options.