Liability Coverage in Auto Insurance

September 22, 2017

Liability Coverage in Auto Insurance

Liability Coverage in Auto Insurance - Liability insurance is part of component in auto insurance that also is required in several states.  The liability auto insurance had been divided in two parts, they are: the property damage liability (PD) and bodily injury liability (BI). Both of these parts will work together to provide compensation for other who had been caused or getting harm by your vehicle, so it protects your assets as well.
Liability Coverage in Auto Insurance
Liability Coverage in Auto Insurance

What is covered in liability auto insurance?

The bodily injury liability will pay for injuries or death to the others in the accidents that you were in fault. It covers the driver and passenger in another car, as well as bicyclist, motorcyclist or pedestrian who had been harmed with your car. The term of auto insurance policy might different, however typically BI provide coverage into your limits, such as:
  • Getting loss of income
  • Paying medical expense for the injured person
  • Suffering and pain
  • Paying the funeral costs

Then the property damage liability also cover the damage for other properties where you are include in accident and caused by your fault. Here several examples of property that potentially can be damaged:
  • Pole
  • Other vehicles
  • Guardrail
  • Fence
  • Building
  • Fire hydrant
  • Landscaping

The liability also covers the law defense if you are filed because of your auto accident.

The limits of coverage

When you were reviewing the options of liability coverage in your auto insurance, you will see difference limits:
  • Bodily injury liability usually limit per individual injured. It defines the maximum payment for injured person that involve in accident that you had been caused until the limit of policy.
  • Bodily injury liability per accident will decide total amount that will be paid by your insurance company for all of damage that related with an accident that you cause. Keep in mind that this is better to set the higher limit so it can pay the medical costs incurred by several people.
  • Property damage liability is the maximum number that your insurance company will pay for damaged loose toward other properties. The maximum payment is not excess than the limit that you had been set for.

What will happen if your limit was exceeded?

As mentioned before that this is better to set up higher limit for liability coverage in order to protect yourself, because you should take this personal responsibility for the expenses from the damaged parties which exceed your own limit. Of course, this is better to pay more in your auto insurance; if you are able to afford it that you should pay for hundred or even thousand dollars for medical expenses. You might think that you will not be sued if you do not have any assets to go for. However, asset or not, you might be sued and there are many states that require you to pay or getting the approval payment plan as well. So, this is better if you can afford more money in this liability insurance to protect yourself and other parties.
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