One of the important things we have in mind is the safety of others who are greatly affected by accidents because of us. No matter how much we try to be a responsible driver, there are moments in our life which just brings out the worse in us that we become reckless drivers. This could just be a simple act of texting or making a call while driving. This act is actually punishable by law in some places, because it distracts the driver from his or her focus. It could be an over estimation of one’s ability to drive when after drinking liquor.
There are times that we also simply want to avoid an accident, but end up creating another problem, which could be damage to someone’s property. The damage can be so costly, that you are not prepared for it. The owner can be very inconsiderate, given that he does not want an amicable settlement. He files a complaint against you, and it puts more stress on your part on how to get rid of the problem.
These are just some of the drivers concerns, and it will be wise to do something about it before accidents happen. That is because we are always forced to pay treatment costs of the injured people and property damage of others. These expenses are sometimes beyond our financial ability, so we end up like a bankrupt businessman or a rich man robbed of his riches.
Liability Coverage helps to remove this burden from you and protects you from further financial loss. This coverage has two types, the Bodily Injury Liability (BI) and the Property Damage Liability (PD). BI covers other people’s bodily injuries for which you are responsible. It includes the medical bills, loss of income or pain and suffering of the injured people only. It does not cover you but others are well secured. On the other hand, PD covers you if your car damages someone’s property. Those properties include not only their car, but also any other property, like their fence and house.
Drivers who face a lawsuit because of the accident will be given legal defense, especially when they have the Property Damage Liability Coverage. This will relieve you from the pressure of finding a lawyer to fight for your rights.
Just like other coverage, the Liability Coverage is limited to the terms and conditions contained in the policy. Just be reminded that if you select limits that are too low, you might possibly be facing a big trouble in the future. In a realistic situation, you are responsible to pay the excess amount when the accident expenses are beyond the coverage limits. You might end up selling your properties and other assets, even to the extent of using your future salary. Purchasing liability limits to account for your current assets and future net worth is a good way to protect yourself from this sudden financial crisis.