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Liability Car Insurance

Liability auto insurance is mandatory and is state controlled like all car insurance. The term liability car insurance is best defined as a defense in monetary terms, when guilty of causing either property damage or bodily injury to another party. These are the terms used by insurance companies in describing liability car insurance. Liability car insurance is in place to protect the driver against claims by the other party. These claims could arise from bodily injury to anyone in their car. It will also protect you against damage to their property, such as running into a fence or part of a home.

Though mandatory, it is the driver's choice as to how much liability car insurance to carry. Liability car insurance is expressed like the following: 25/50/15. This means that the company will pay up to 25k for injury to one person per accident, 50k for injuries to more than one person per accident and 15k refers to property damage covered per accident. Liability car insurance pays for car damage as well as physical injury and property damage.

Should the driver take this amount of coverage and causes more than 25k worth of injuries, which could include the other individual losing income from not being able to work, a problem could develop. Though there are "no fault" states that limit liability, the other party can come after the driver's assets; the person who caused the physical damage and a home can be endangered. This is why it requires careful study of "what if" situations. It makes little sense to save money on liability car insurance and then risk losing your most valuable investment, your home.

Most people buy car insurance because it is state mandated. They do not think of the consequences if and when a tragedy occurs. They just do not want to be subject to penalties, if caught riding without any liability car insurance. It should be pointed out that when the amount of car insurance coverage is purchased that passes the minimum required, the price drops. Therefore, it is not as expensive as one thinks to purchase liability car insurance that surpasses the minimum state requirements.

When in the market for liability auto insurance, the buyer should keep in mind that higher coverage for personal injury is more important than property damage coverage. The price of a new car has a limit, perhaps 30k to purchase a new car, that you damaged or destroyed. Maiming or killing someone is an open ended number. If carrying the minimum property damage liability car insurance, make sure this is not the case for liability car insurance for bodily injury.


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