Liability Auto Insurance Coverage
Standard auto insurance often means liability insurance and in the United States it’s illegal to drive without some sort of liability coverage. Just like owning a car has its ups and downs (Pros, getting from point A to B with relatively little hassle, having the freedom to come and go at will and road trips; Cons: gas money, mechanical problems and the possibility of accidents. Having the proper auto insurance is a necessary evil of owning a motor vehicle. Instead of harping on the negative side of liability insurance, it may be helpful to remind ourselves why having this type of car insurance is a good thing, in the long run – every single time.
What is Liability Insurance?
Liability insurance covers the cost of damage to another person or property in the event you’re held liable for damage caused in an accident. This type of coverage can come in handy when you’re found to be the cause of an accident that caused harm or damage to another person or motor vehicle. While state laws vary on how much coverage you need, they all agree that a driver must have minimum liability in order to drive legally.
Types of Liability Insurance
Property Damage Liability insurance or PLD will cover the costs of any property damage in an accident caused by you. Usually ‘property’ in this case refers to another motor vehicle but it’s not limited to cars and could include houses, mailboxes, barns, garages, retail centers and more. Basically property damage liability covers the cost of any property damage your car happens to incur.
Like Property Damage liability, bodily injury liability or BI only covers damage that occurs to another because of an accident where you were at fault. Having the proper coverage insures that you’ll be able to cover the cost in the event that another person ends up in the hospital because of a car accident you caused. It’s also a good way to avoid being slapped with a civil lawsuit.
Typical Cost of Liability Insurance
The good news is because carrying proper liability coverage is mandatory in most states, insurance companies have made these rates affordable even for those workers making below minimum wage. Find out if you can apply for any discounts. Veterans, teachers, and full time students are often eligible for liability insurance discounts. Shop around or ask your local insurance agent for a list of discounts if you’re not sure if you can apply. Another easy way to keep monthly premiums down is to have a higher deductible on your plan. The more your plan’s deductible is, the less you will have to pay. Pay in full and avoid monthly payments to find even more savings on liability insurance.