Liability Coverage Dissected


The insurance coverage that you may obtain is considered to be the most significant to you, considering a lot of different factors of course. With so many existing insurance quotes coming from different insurance companies, we sometimes overlook at the fact that understanding it is more important.

One insurance premium is perhaps good to somebody but don’t expect that it is best for everyone. Your lifestyle and the way you use your car determines what king of car insurance will be most appropriate for you.

One of the must have auto insurance is the liability coverage. It is very significant to know at least the fundamentals of this coverage to have an edge in case you will be in a car accident and you need to use your insurance for support.

Liability coverage is subdivided into two key parts. The first fraction is the bodily injury coverage (BI) and the second part is the Property Damages coverage (PD). They are both necessary in case of a car accident, and you as a driver must to pay for damages such as medical attention to third parties and properties that were destroyed.

Liability coverage may vary depending on the state where you reside. The different states of the United States of America provides different minimum amount of liability coverage to be carried by a driver in their auto insurance. A few may be more expensive than others but that surely is determined on the specific situations that each states have.

Some states combine both personal injury and property damages coverage but most states don’t. When combined, it is called combined single limit coverage. Meaning that the minimum amount to be paid in case third parties are injured and properties were damaged is divided into three parts. 15/30/10 division for example means $15,000 maximum amount to be paid by the insurer per person, $30,000 maximum amount per accident for BI and $10,000 maximum amount for personal property damages per accident.

Bodily injury includes payments for the medical attention needed by third parties who are injured in the accident. Even laboratory expenses are covered by this coverage. This coverage may be predetermined by the car insurance company, but the important thing is for you to be aware of what instances are covered and what things are not. Mainly, it is for medical attention for injured third parties.

Property damage is a part of the liability coverage that would take care of the property destroyed in an accident. They are, but not limited to, telephone poles, fences, third party’s car and other properties of the same classification.

Having liability coverage is your shield against damages that you might cause to other person, either be bodily injuries or property damages. The important thing is that there are minimum amount specified in your state. Adding additional amount in your premium will also give you better coverage.

As a driver, you would not want to cause misfortune to others but of course, we cannot control circumstances most of the time. If only we could control these things then there would be no need for car insurances. Car insurance is our protection against uncontrollable events.