There are a number of auto insurance liabilities available to car owners and while some of these liabilities are mandatory others are simply helpful. While opting for vehicle insurance the car owner is given an option to choose liabilities and add them to his plan for additional security. This article will elaborate on some of the useful auto insurance liabilities that can protect you and your car further.
Bodily Injury Liability
This particular auto insurance liability is mandatory in most states. This liability protects the third party who is in your car during an accident. The bodily injury liability pays for lost wages, medical expenses and trauma related expenses for the third party. This liability is applicable to more than 1 third party person in your car provided the limit you have opted for covers all expenses. The bodily injury liability even pays for your legal expenses in case the third party decides to sue you. Choosing a higher limit for this useful liability can prevent you from being sued by anybody who is inured in your car while you were driving. The bodily injury liability does not cover your medical expenses or for your lost wages in case of an accident.
Property Damage Liability
This auto insurance liability is extremely useful since it pays for repair and replacement of the other person’s property. While the car is the most common property damaged during an accident, this liability also pays for fences, damage to houses or any other property that has been damaged or destroyed during an accident. Property damage liability does not pay for your car nor does it pay for medical expenses for either party. The recommended limit for this liability is $100,000 per accident.
Personal Injury Protection
As the name suggests this auto insurance liability pays for your and your family’s medical expenses and funeral costs after an accident despite whose fault it was. Most people who have health and life insurance choose lower limits for the personal injury protection cover.
Uninsured or Under Insured Liability
The underinsured or underinsured motorist liability is considered as one of the most useful auto insurance liabilities. This liability pays for medical expenses, lost wages and funeral costs for people who have been hit by another driver who does not have insurance or who does not have adequate insurance cover. This liability pays for your expenses if you were in your car or if you were walking on the road. This liability usually costs $40 per year for a limit of $100,000 per person.
Collision and Comprehensive Cover
Collision cover pays for complete repairs or replacement after your car has been in an accident. Comprehensive cover on the other hand pays if your car has been damaged during a natural calamity or has been a victim of vandalism. Comprehensive cover does not pay for any damages that have occurred during an accident. People who have old cars often don’t opt for these two policies since the vehicle insurance companies do not give a good amount of totaled cars. If you stay in an area where there is a lot of hurricanes, storms or other natural calamities then you should opt for comprehensive cover. If you stay in an area that has a lot of vandalism then you should consider getting comprehensive cover.
