What does auto liability insurance cover?
Liability policy covers you if you are found at-fault for an car accident. Let ’ s say you make a leave turn without checking your blind blemish, and you don ’ triiodothyronine see an onset car, which causes you to run into their vehicle. not only is the other cable car damaged, the driver says they have neck pain. Because your liability policy covers the other person ’ sulfur expenses, you won ’ deoxythymidine monophosphate have to come up with the cash. Liability indemnity coverage includes :
- medical costs
- Lost wages
- pain and suffering
- funeral expenses
- animate or substitution costs of the other driver ’ mho vehicle
- animate or replacement of any other damaged property
liability may besides cover your legal bills, should the other driver or their indemnity company end up suing you .
What does auto liability insurance not cover?
It ’ mho very authoritative to understand what liability policy does not cover :
- Your checkup expenses and lost wages
- repair or successor costs to your car
In inadequate, your liability doesn ’ thymine cover anything that happened to your fomite, and that ’ s why some people call it third-party indebtedness. To protect yourself, your collision and comprehensive coverage will help cover these things, even if you are at demerit .
Is liability insurance required?
The light suffice : Yes, when you buy car indemnity, your policy has to contain a certain sum of liability coverage ( there ’ s a certain sum required in all 50 states ). The amount is specified by law.
How much liability coverage is required and what is recommended?
Each state sets a minimum sum of liability insurance you need on your cable car. In the country of Ohio, for exemplar, the minimum liability coverage for bodily injury per person is $ 25,000, bodily wound per accident is $ 50,000 and property price is $ 25,000. however, you may find that the state ’ s minimal may not be adequate to protect you financially. Consider this. In 2016, the average liability claim for bodily injury was $ 16,110, according to the Insurance Information Institute. Yet, in seven states, the minimal bodily injury per person is set at $ 15,000. That means you could be out there driving with a good chance that minimum coverage won ’ t take care of all the costs .
Liability coverage limits explained
here is how liability coverage limits work. Let ’ s say you had a cable car accident on the highway and you were found at fault. The driver was hurt and taken to the hospital with injuries. Let ’ s say your car indemnity had bodily injury coverage at $ 25,000 per person and $ 50,000 per accident. If the driver ’ s hospital bill came to $ 30,000, the beginning $ 25,000 would be covered, and you would likely have to come up with the remaining $ 5,000. If there are multiple passengers in the barge in who besides got hurt, the expenses could well exceed the minimum limit set by the state .
Can you buy higher limits?
One option is to buy higher limits on your liability policy. This will increase what you pay for premiums. But you ’ ll have peace of mind knowing you ’ re well protected. 
After the investigation, you could be found at mistake for the crash. The induce could be chalked up to simple carelessness. Or possibly it was strictly accidental, such as hitting a bandage of internal-combustion engine and sliding into person else ’ s car. Either manner, when you are deemed the causal agent of any accident, you can be found responsible for early people ’ sulfur medical costs along with wrong to their car or other property .
What factors determine the cost of auto liability coverage?
If you purchase a higher limit on your liability insurance for the extra protective covering, you will pay a higher premium. however, many other factors can affect the overall costs of your car indemnity. here are a few :
- Credit history: Doing things like paying your bills on time may have an effect on what you pay for car insurance. Credit score is one indicator of how likely you are to file a claim.
- Driving record: Good driving habits, like avoiding speeding tickets, and avoiding illegal and dangerous activities, such as drinking and driving, may have a positive effect on what you pay for car insurance premiums. Again, the insurance company is analyzing the risk to insure you, and those who have a record of careless or dangerous behaviors behind the wheel are more likely to file a claim.
- Location: If you live and drive in a busy urban area, you’re considered more likely to file a claim than, say, someone who lives and works in a more rural area. In an urban area, the risk of accidents and vandalism are higher.
- Miles driven: Again, it all comes down to risk. The more miles you drive in your car every year increases the likelihood of an accident. The person with an hour-long commute may pay higher premiums than someone who, say, works from home.
To help you understand your coverage and choose the right measure for your life style and budget, talk to your ERIE Agent .