Understanding Liberty Mutual's Auto Liability Coverage

Liberty Mutual offers a range of auto insurance options, including liability coverage, to its customers. The company has been in the insurance business for over 100 years and provides various tools and resources to help customers understand their policies and coverage. Liberty Mutual's website features an online claims centre, where customers can file and manage their claims, as well as access policy documents and coverage details. The company also offers a mobile app for customers to manage their policies and claims on the go. In addition, Liberty Mutual provides a range of customisation tools to help customers find the right coverage for their unique needs.

Understanding your deductible

An auto insurance deductible is the amount you pay out of pocket towards an accident or a claim. In other words, it's the amount you need to pay before your insurance coverage kicks in and pays the remaining costs. For example, if you have a deductible of $250 and your insurer determines that you have an insured loss worth $10,000, you will receive a claims check for $9,750. It's important to note that the deductible applies to each loss you file under your auto insurance policy.

Certain coverages require you to pay a deductible, such as collision, comprehensive, uninsured motorist property damage, and personal injury protection. When choosing a deductible amount, consider the dollar amount you are comfortable paying out of pocket. Additionally, the deductible amount will impact your car insurance premium. A lower deductible will result in a higher insurance premium, while a higher deductible will lead to a lower premium.

It's worth noting that in some states, you may be able to purchase additional auto insurance coverage that waives your deductible in certain scenarios. Also, some insurers offer a "disappearing deductible" program, where your deductible amount decreases or is waived if you go a set amount of time without a claim or violation.

You pay your deductible when you file a claim under a coverage that carries a deductible, assuming the damage is covered and exceeds your deductible amount. If your claim is approved, the deductible will typically be subtracted from your claim's payout.

It's important to understand how deductibles work to prevent surprise costs and make informed decisions about your insurance coverage. By choosing an appropriate deductible amount and considering its impact on your premium, you can ensure you're getting the most out of your auto insurance policy.

What auto liability insurance covers

Auto liability insurance is a basic type of automobile insurance that covers the costs of damages to another person's property or injuries caused by an accident in which you are at fault. This type of insurance is required by most states to legally drive your vehicle.

Auto liability coverage includes two types of coverages: property damage and bodily injury. Property damage coverage insures against damage to another person's property caused by your vehicle. This includes repairs to the other driver's vehicle, the cost of a rental vehicle while the other person's car is being repaired, and damage to buildings, fences, or other structures, as well as personal property such as electronics or belongings inside a vehicle. It also covers legal fees if you're sued for property damage and other related costs.

Bodily injury coverage, on the other hand, provides payment for injuries sustained by another person in an accident. This includes their medical costs, out-of-pocket expenses, and legal fees if you're sued for causing injury. It's important to note that liability coverage does not cover costs to repair your own vehicle or your own medical expenses in the event of an accident.

The cost of liability insurance depends on various factors, including the amount of coverage selected. Higher coverage limits may cost more, but it's important to consider your ability to pay out-of-pocket expenses if you're involved in an accident where the damages exceed your coverage limits. Most states have minimum liability coverage requirements, but it's recommended to assess your own needs and choose coverage limits accordingly.

What auto liability insurance doesn't cover

Auto liability insurance is a crucial aspect of car ownership, as it helps cover the costs of damages to another party if you are at fault in an accident. However, it's important to understand that auto liability insurance doesn't cover everything. Here are the key things that auto liability insurance typically doesn't cover:

Repair Costs for Your Vehicle

Auto liability insurance is designed to cover the costs of repairing or replacing the other person's vehicle involved in the accident. It does not cover the costs of repairing your own vehicle. For that, you would need comprehensive or collision coverage. This type of coverage will pay for damages to your vehicle, whether it's from a collision or other causes such as vandalism or a falling tree.

Medical Expenses for Your Injuries

While auto liability insurance covers the medical costs and out-of-pocket expenses of the other party involved in the accident, it does not cover your own medical expenses. If you want coverage for your own injuries, you would need to look into Personal Injury Protection (PIP) or Medical Payment (MedPay) coverage, depending on your state's requirements. These coverages will help pay for your hospital bills and any other health-related costs that arise from the accident.

Damage from Weather or Animal Encounters

If your car is damaged by an event such as a hailstorm, a collision with a deer, or a falling tree, auto liability insurance will not cover the repairs. Comprehensive coverage is what you need in these situations. It covers damages to your vehicle caused by events other than collisions.

Your Own Injuries on Your Property

Auto liability insurance typically covers injuries to others that occur on your property, but it does not cover your own injuries. If you want coverage for your own injuries on your property, you may need to consider additional coverage options, such as personal liability coverage.

Legal Expenses for Lawsuits Related to Your Own Injuries or Property Damage

While auto liability insurance may cover legal expenses for accident-related lawsuits involving the other party, it does not cover legal expenses related to lawsuits for your own injuries or property damage. To protect yourself financially in such cases, you may need to explore additional insurance options or consult with a legal professional.

It's important to carefully review your auto insurance policy to understand exactly what is and isn't covered. The coverage options and requirements can vary from state to state, so it's always a good idea to consult with a trusted insurance provider to ensure you have the right coverage for your needs.

Is auto liability insurance required?

Yes, auto liability insurance is required in almost every state in the US. While the specific requirements vary by state, most states mandate auto liability insurance for drivers to legally operate their vehicles. This type of insurance is essential as it provides financial protection if you are responsible for someone else's injuries or property damage in a covered accident.

Auto liability insurance typically consists of two main components: bodily injury liability and property damage liability. Bodily injury liability helps cover the medical expenses of individuals injured in an accident caused by the insured driver. This includes emergency and ongoing medical expenses, loss of income, funeral costs, and legal fees if the accident results in a lawsuit. On the other hand, property damage liability helps cover the costs of repairing or replacing the vehicles and other property damaged in the accident. This includes repairs to other drivers' vehicles, rental vehicles while the damaged car is being repaired, and damage to buildings, fences, or other structures and personal property.

It is important to note that auto liability insurance does not cover the costs of repairing your own vehicle or your own medical expenses in the event of an accident. To protect yourself from these financial burdens, you may need to purchase additional coverages, such as collision coverage, comprehensive coverage, or medical payments coverage.

While the minimum liability coverage requirements vary by state, it is generally recommended to purchase higher coverage limits than the state-mandated minimums. This is because the minimum coverage may not be sufficient to cover all the expenses in the event of a serious accident. By choosing higher liability coverage, you can better protect yourself and your assets in case of unforeseen incidents.

How much liability coverage is needed?

The amount of liability coverage you need depends on a few factors. Firstly, it is important to understand your state's insurance laws. Most states require liability insurance to legally drive a vehicle, and the required liability limits vary across states. For example, Alabama requires a minimum of $25,000 of bodily injury liability per person, $50,000 per accident, and $25,000 of property damage liability.

While it is important to know your state's minimum liability limits, this amount may not be adequate for your needs. It is generally recommended to have liability insurance that covers your net worth. If you have a significant amount of assets, such as a house, car, or savings, you may want to purchase higher liability limits or consider an umbrella insurance policy to provide extra coverage.

Additionally, think about your financial situation. Car insurance may seem unnecessary for those on a tight budget, but it can save you from greater financial strain in the event of an accident. For example, if you crash into someone else's property and are sued for damages, those expenses can far exceed your insurance premium.

When deciding on the amount of liability coverage you need, ask yourself how much you can afford to pay out-of-pocket if you are at fault for an accident and the damages exceed your limits. It is important to remember that even minor accidents can result in significant costs, and serious accidents involving multiple vehicles and people can lead to high medical bills and legal expenses.

Finally, consider the likelihood of being involved in an accident and the potential costs associated with it. While the chances of a 10-car pileup are slim, car accidents can be expensive, and it is essential to have sufficient coverage to protect your finances.

Frequently asked questions