Insurance policies and coverage terms often go by the wayside and under the radar of most policy holders. But how much knowledge you have of your policy often coincides with whether or not you end up with the raw end of the deal if you have an accident. Liability coverage is a touchy area that is not commonly understood but ought to be. Our goal is to help you better understand what liability coverage means for you and your family in case of an accident. Here are three areas you should understand before you sign off on a policy.
Auto Liability Coverage’s
Depending on the policy, most auto liability coverage secures you in the following incidents up to the amounts listed beside them:
– Property Damage/ dependent upon the limit you set anywhere from $25,000-$100,000
– Bodily injury liability limit per person injured/ you establish the max payout on your policy
– Bodily injury liability limit per accident/ you establish this limit
Collision & Deductibles
Collision coverage is slightly different than comprehensive coverage but can be added to be your policy apart from comprehensive. Collision protects your car in the case of an accident. It doesn’t cover any damage done to another vehicle but if you hit a tree or other stationary object your damage is covered.
Deductibles determine the amount you have to pay your insurer out-of pocket to receive the coverage limits you’ve sent. So if you have a $500 deductible you have to first come up with the $500 before your insurer will pay for any damages incurred in the accident.
Property damage liability covers damaged property and may include any loss of use you experience.
Why Choose More Coverage?
Many people choose to opt for the bare minimum of coverage that the law allows, but you get what you pay for, and if you choose a policy that does not cover bodily injury or property damage you could set yourself up for lawsuits. For the price of a cheap lunch you can upgrade your policy from liability only to more comprehensive coverage. Why not have you and your family fully protected from financial woes by opting for more insurance? Call Tony Moreno Insurance today at (909) 986-2550 or contact us online and talk to an agent to set up more extensive coverage on your auto policy today!
It is a known fact that accidents happen and everyone wants to make sure to get appropriate coverage because it might be very expensive. Hence, liability can be defined as the person who is at mistake or fault. The individual who caused this damage is liable to another individual for his or her actions. If due to your fault any accident happens and results in a bodily injury to other person or damage to the property, auto liability coverages will safeguard your financially or monetarily. It will cover all if not most of the expenses of the injured party, which will include court and legal costs, damage to the vehicle and medical costs.
Normally, minimum liability coverage is obligatory by all the states for any kind of policy and consists of two kinds: property damage and bodily injury. It can be said that this covers all the damages you are lawfully accountable for or after the accident.
- Bodily Injury Liability – In the case if you cause death or injury to someone, this will cover the court fees, suffering and pain, loss of income, funeral expenses, hospital and medical bills only if you are being sued and any other likely costs due to the injury caused to the involved person.
- Property Damage Liability – If the property of another driver is damaged and you are at fault, this will cover up to the amount you have signed up to be covered. It can consist of the maintenance needed to fix the vehicle of other person or purchasing a new replacement for it, damages to signal lights, signs, fences and buildings.
One other significant characteristic you require to know is liability limits, which is generally expressed in 3 separate numbers, like $5000/$30000/$15,000. This actually refers to the highest total your policy can give in case you want to utilize your auto liability coverages.
- The first number denotes the highest amount of money your policy can pay for replacements or repairs to the damaged property involved.
- The second is the maximum amount of money your policy can give for all the individuals injured in 1 accident.
- The third number is the highest amount of money your policy will actually cover for each of the person involved.
At the same time, Collision & Deductibles also needs to be given importance while going for the liability coverage. As you may anticipate, having the lower limits will certainly not cover you completely and this will leave you accountable for all the surplus costs. Due to this reason, it is significant that you choose for the maximum limits which will shape in contentedly within your total budget, if you are mixed up in a very serious accident.
Hence, Auto Liability Coverages protect you from the damages caused due to your fault, but does not cover any kind of damages to your property or you, this is why you also require to have collision and Deductibles coverage. However, understanding this important section of your policy is usually one stride ahead in getting fully protected for any kind of accident on the road.