Car Insurance - A Guide To Liability Car Insurance Coverage
Liability coverage is one of the most important types of car insurance coverage. It provides protection for other drivers and passengers involved in an accident, or property that's damaged due to a policy holder's vehicle.
There are a few types of liability coverage. The most popular are bodily injury liability and personal property liability coverage. Bodily injury liability pays for the medical bills of other parties, while personal property liability pays for damaged property. If your car runs into a house, it would be covered by your personal property liability, up to the limits of your coverage.
Most states that operate on a tort system require drivers to have a minimal amount of liability coverages. The exact minimum requirements for liability insurance vary from state to state, but generally speaking, most states expect drivers to hold at least $10,000 of coverage per type, with many states requiring much more. You can find out the requirements of your state through a quick Internet search or by calling your DMV. However, insurance companies generally will refuse to sell less than the minimums that a state requires, as this puts them at risk.
Be sure to look at your deductibles when selecting liability coverages, and make sure that they're affordable. Always plan on an accident occurring, but realize that there is such a thing as too much car insurance coverage. If you drive on relatively safe roads, and you don't spend a lot of time in your vehicle, it wouldn't be wise to buy hundreds of thousands of dollars' worth of liability coverages. Think about your habits before selecting coverage levels, and always take the time to look around. Get a number of car insurance quotes, and you'll keep the cost of your liability coverages at a decent level without overpaying for the protection.