Liability Car Insurance
Liability car insurance is what is commonly known as bodily injury and property damage insurance. These are the two types of coverage that you are required by law to have in order to drive legally in most states. Every state in the country has set limits for how much of this liability insurance you must purchase and if you fail to do so, you will suffer penalties such as having your license or vehicle registration suspended.
Some people misunderstand the point of liability coverage; it’s not to protect your own vehicle. In tort states, states where people are allowed to sue each for damages caused during a car collision, someone has to be declared the cause of an accident. After this has been done, everyone knows who should pay for everybody else’s bodily injuries and property damages. Liability car insurance pays for exactly these damages.
States that require liability coverage have set different limits for how much insurance must be purchased for the medical bills of one person who was hurt in a collision. For example, one of the highest limits comes from the state of Alaska. In this state, you must have $50,000 bodily injury coverage for the medical expenses of one person.
You are also required to purchase an amount of bodily injury coverage for everyone hurt in the car collision. In Alaska, this number is $100,000. If 10 people were hurt in the car accident, 10 people can file a claim with the at-fault driver’s auto insurance company. Once these 10 people’s bills have reached the limit of $100,000, the auto insurance company’s responsibility to pay the bills ends.
When a car crash occurs, property can be damaged and most of the time, it happens to everybody’s vehicles but it can also include the city’s property. You can be forced to hit a light pole, for example. Car repair bills and the bill from the city to fix the light pole are property damages that property damage liability coverage takes charge of. The limit that you must purchase in Alaska would be $25,000.
Every state has determined a different limit for liability car insurance coverage. If you don’t purchase this coverage and also don’t make arrangements to show that you can be financially responsible for the damages you cause, you will be violating your state’s laws. The limits protect you from being sued by third parties who were hurt in an accident where you were found at fault, so liability coverage doesn’t just keep you in compliance with the law; it also helps to save your finances.