Liability car insurance is a crucial aspect of owning and operating a vehicle in the United States. It provides protection for property damages and bodily injuries sustained by a third party in an accident where you are found to be at fault. Most states require drivers to have liability car insurance, with minimum coverage requirements varying by state. Understanding the key takeaways of liability car insurance can help you make informed decisions when it comes to protecting yourself and others on the road.
Liability car insurance is typically described with three numbers that represent the maximum amount your insurer will pay out after an accident. These numbers represent bodily injury liability per person, bodily injury liability per accident, and property damage liability per accident. For example, a 100/300/100 policy would pay out up to $100,000 per person in bodily injury liability, $300,000 per accident in bodily injury liability, and $100,000 per accident in property damage liability coverage.
While liability insurance protects you from paying out of pocket for damages sustained by a third party, it does not cover damages to you or your vehicle after an accident. If you want coverage for your own injuries and property damage, you will need to consider additional coverage such as collision and comprehensive insurance. It’s important to note that liability coverage won’t pay for property damages and medical bills for the other driver if you are not at fault.
The cost of liability car insurance varies depending on several factors, including your age, driving record, credit score, and the insurance company you choose. On average, drivers in the U.S. pay around $869 per year or $72 per month for minimum liability coverage. This is significantly cheaper than the cost of full-coverage insurance, which includes liability, collision, and comprehensive coverage.
When determining how much liability insurance you need, it’s essential to consider the potential costs of accidents and whether your policy limits are sufficient to cover those expenses. In some cases, it may be advisable to purchase more than the state-minimum amount of coverage to ensure you are adequately protected. Additionally, there are other coverage options you can consider, such as collision insurance, comprehensive insurance, uninsured/underinsured motorist insurance, medical payments coverage, and personal injury protection.
When shopping for liability car insurance, it’s important to compare quotes from different providers to find the best coverage at the most affordable price. Two recommended insurers for liability car insurance are Travelers and USAA, both of which offer competitive rates and quality coverage options. Ultimately, finding the right insurer involves considering factors such as cost, coverage options, reputation, and customer service.
In conclusion, liability car insurance is a fundamental aspect of responsible driving and vehicle ownership. While it may be cheaper than full-coverage insurance, it offers less protection in the event of an accident. Understanding what liability insurance covers, how much coverage you need, and the additional coverage options available can help you make informed decisions to protect yourself and others on the road.