The Basics On Auto Liability Insurance
Got your first auto? You might start to rationalize that car accidents can happen anytime. The next thing you know, you are already emptying your pockets for sky-rocketing liability bills. And, by the way, questions and settlements on liability are usually done in courts. Now, you are calculating. Well. Before you finally succumb to this one sad truth, you can have your cars protected by Auto Liability Insurance.
As defined, liability is a person’s responsibility for someone else’s injury or loss. Is this ever a good idea? Having an insurance policy is. This means that the damages and all it costs will be shouldered by your insurance provider. You might worry about high premiums later but it is positively far better than paying for settlements in courts from your own purse. It is like standing at a safe place even in case you ran out of proofs that you did not cause the accident. Besides that, Auto Liability Insurance rescues your car when damaged by fire or even when vandalized.
Driving without car insurance is considered illegal in all states except New Hampshire. That is in accordance to Insurance Information Institute (III). This means that having an Auto Liability Insurance is not only being protected but also being responsible.
Auto Liability Insurance policy has six types of coverage which some of them are optional depending on your home location. Auto Insurance includes:
Bodily injury liability which covers lost wages and medical bills relating to the damage you caused others;
Personal Injury Protection (PIP) which secures medical payments for injuries you and your passengers suffered;
Property damage liability pays for cars, fences and other properties you destroyed. It is also inclusive of the amount you have to pay if sued, but only up to the policy’s limit.
Uninsured motorists coverage (UM) covers payments for medical bills if victimized by hit-and-run or stroked by an uninsured driver. In case that the driver caused the accident, medical expenses will be paid up to limit and the rest will be covered by Underinsured motorists coverage (UIM);
Comprehensive covers repair or replacement fees for your car but should not be caused by accidents. This includes vandalism, fire, natural disasters, hitting animals or even theft;
Collision coverage pays for the damages of your own car in case of accidents;
There are two types of Auto Liability Insurance, both have limits or the total amount the policy will be covering against the damages you caused. First type of policy is Combined Single Limit which secures two or more coverage in a single policy. The second one is Split Policy in which two or more coverage are to be paid separately.
Never forget to check on your pockets when deciding on what type of policy you will buy. It will also be good if you consult a professional insurance agent about what type would suit you best.
Protecting your car always rely on your decision; you may want to have it secured by your own pocket, sure, but having know the basics on Auto Liability Insurance, your decision starts out with an answer to this question: Which idea is better?