Top Reasons To Buy Liability Insurance

All but two states―New Hampshire and Wisconsin―have liability insurance requirements. You may grumble at the cost of liability insurance, but it's one of those purchases that you may not ever need―knock on wood―but if you do you will be thankful for having it.

 

The Benefits of Liability Auto Insurance

Liability car insurance, in a nutshell, provides you with peace of mind. It financially protects you against your driving errors. If you're found at fault for hitting another vehicle, or a pedestrian, or even damaging someone's property by taking out a front yard picket fence with your car, your liability coverage will pay for the majority of the costs.

Which, if you did not have, could financially ruin you.

This bears especially true in the event of serious injury.

How much you pay depends on:

• The cost of the damages and/or injuries.

• Your agreed upon deductible. A deductible is what you pay towards the damage and/or bodily injuries caused by your driving negligence. For instance, if you have a $500 deductible, and the damage to the other driver's vehicle is $2,400, you'd pay $500 out of your own pocket and your insurance provider would cover the remaining $1,900.

Liability insurance also, of course, works in reverse. If you're the victim of someone's driving miscue, causing you to spend several weeks in the hospital, you'll be happy the other driver, hopefully, carries liability coverage. Not only will your medical expenses be covered, but you'll also be compensated for lost wages.

 

How to Buy a Liability Car Insurance Policy

When shopping for liability coverage, follow these steps:

1. Learn your state's liability coverage limits (minimum amounts). More often than not you'll see it written in this three-number format: 15/40/10. In this example, it would mean you'd be covered for up to $15,000 in bodily injury coverage per person, $40,000 in bodily injury coverage per accident and $10,000 in property damage coverage per accident. You can obtain your state's limit requirements from your state's insurance department or by calling your local DMV office.
2. Decide on your deductible amounts (how much you'll initially pay for damages and/or injuries). Keep in mind that the lower the deductible, the higher your car insurance premium.
3. Compare insurance rates. All providers offer different rates for different situations (age, driving record, type of car, etc., etc.). The more quotes you compare, the better your chances of finding a liability insurance rate to best meet your budget.
4. After settling on an insurance carrier, inquire about discounts. Most reputable car insurance companies offer discounts for clean driving records, low mileage, strong credit ratings, bundle packages and defensive driving school enrollment.