There are many car insurance companies to choose from in the market today. Aside from that, the choices on what type of coverage do you want to take advantage of is sometimes confusing. Even though online quotes are within our grasps, it is still confusing if there is no one to give details about the basic of the different car insurance coverage. Let us take a closer look on liability auto indemnity coverage.
Liability auto insurance coverage is actually divided into two separate parts namely, the bodily injury and the property damage. Some states may combine these two but it is usually separate in most states. It is important to take note that this coverage will be applicable to the other driver’s welfare in consideration of the policy holder being at fault. This will not cover damages to the policy holder’s car and even medical expenses if he is at fault on the mishap. This type of indemnity will be ready to lend a hand to policy holders to protect their assets.
Bodily injury is subdivided again into two separate clauses. One is the maximum amount per person and the other one is the maximum amount to be paid by the insurer per accident in case policy holder is at fault in an accident. It is represented by the first two numbers such as 15/30. The first number will be the amount to be paid per person per accident while the second figure is for the maximum amount to be paid per accident. Furthermore, it means that it would be $15,000 dollars maximum per person and $30,000 maximum per accident for bodily injury.
The second part is the property damage. Since the first two sets are for “amount per person” and “amount per accident” respectively, the third number will be the maximum amount to be paid by the car insurance company for property that are being damaged by the policy holder at fault. This would include the car of the other party and other properties such as fence and even telephone poles.
Aside from the fact that all states require every driver to have liability auto insurance coverage, this is also a protection against events that are not within our control. It is better to pay more on your indemnity than exposing your properties at risk in case of accident. If you do not have auto insurance coverage to back you up during these trying times, you might end up surrendering real properties to take care of the damages that you have caused to other people and other properties aside from yours.