Liability Plus Auto Insurance: What You Need To Know

Liability auto insurance is the minimum coverage required by law in most states. It protects you financially if you're responsible for someone else's injuries or property damage in an accident. Liability insurance covers injury or damage to another person or their property, rather than you or your car. It typically includes two types of coverage: property damage liability and bodily injury liability. Property damage liability covers repairs to the other driver's vehicle, damage to buildings, fences, or other structures, and damage to personal property. Bodily injury liability covers medical expenses, lost wages, and pain and suffering for other people injured in an accident. Liability auto insurance is essential to protect yourself financially and comply with legal requirements while driving.

Bodily injury liability coverage

Liability Plus auto insurance, also known as "umbrella insurance", is a type of insurance coverage that offers additional protection in the event of a large judgement against you. While your auto and property insurance policies offer protection against routine accidents and injuries, a single serious accident could result in a judgement that exceeds your coverage limit. In such cases, Liability Plus insurance can provide additional coverage to protect your personal assets and future earnings.

Liability Plus insurance typically covers vehicle-related accidents as well as accidents that occur on or around your property. For example, it can provide coverage for accidents on cracked sidewalks or incidents involving swimming pools and trampolines. It can also cover dog bites, which are typically included in homeowner's insurance, but may result in large settlements that exceed your coverage limit.

One important component of Liability Plus insurance is Bodily Injury Liability Coverage. This type of coverage helps pay for injuries to others if you are at fault for an accident. It can also help cover legal fees if you are sued for damages. Bodily Injury Liability Coverage is required by most states and is included in most car insurance policies. However, it is important to review your policy to ensure that you have adequate coverage.

When choosing a Bodily Injury Liability Coverage policy, it is important to understand the coverage limits. These limits are typically represented by three numbers, such as "100/300/100", indicating the per-person bodily injury liability coverage, per-accident bodily injury liability coverage, and per-accident property damage liability coverage, respectively. It is recommended to select coverage limits that are sufficient to protect your financial assets in the event of a significant accident.

In summary, Bodily Injury Liability Coverage is a crucial component of auto insurance, providing protection for both the policyholder and the injured party in the event of an accident. By understanding the coverage limits and customising the policy to your needs, you can ensure that you have adequate protection while also complying with the legal requirements of your state.

Property damage liability coverage

Liability auto insurance is a type of insurance coverage that pays for property damage and/or injuries to another person caused by an accident where you are at fault. This type of insurance is required by most states to legally drive your vehicle. Liability coverage typically refers to two types of coverages: property damage and bodily injury.

The amount of property damage liability coverage you need will depend on the state you live in, as each state sets the minimum amount of coverage required. However, it's important to consider your own circumstances when deciding on the level of coverage. For example, if you own a home or other expensive items, or if you travel frequently in high-traffic areas with expensive vehicles, you may want to consider higher levels of coverage.

In the event that the cost of damages exceeds the amount of your coverage, you will be responsible for the remaining cost. Therefore, it is crucial to carefully select your coverage limits to ensure you have adequate protection. You may also want to consider adding an umbrella insurance policy, which can provide additional coverage on top of your normal car insurance.

Understanding property damage liability limits is essential for safeguarding your financial security. These limits indicate the maximum amount your insurance policy will pay for damage caused to someone else's property in an accident for which you are found responsible. For example, if you damage another person's car in an at-fault accident, your property damage liability coverage will cover the costs up to the limit you have chosen. Inadequate coverage could leave you personally responsible for repaying expenses beyond your coverage limits.

Uninsured motorist coverage

There are two types of uninsured motorist coverage:

• Uninsured motorist bodily injury (UMBI) coverage, which pays for medical bills, pain and suffering, lost wages, and funeral expenses. It may also cover you if an uninsured driver hits you as a pedestrian or while riding your bike.
• Uninsured motorist property damage (UMPD) coverage, which pays for damage to your car or property. If you live in a state that requires a deductible for this type of coverage, you are responsible for paying a certain amount of a claim, and then your insurance will cover the rest (up to your policy limit).

The cost of uninsured motorist coverage is relatively low, but it can be more expensive in states with a higher number of uninsured drivers. You usually have the option of choosing the insurance limits of your coverage. For the bodily injury portion, consider matching the amount of your liability coverage. For UMPD coverage, you can select a limit that closely mirrors the value of your vehicle.

Personal injury protection

Liability auto insurance covers injuries and damage caused to others on the road by the policyholder. This type of insurance is required by law in most US states. It covers property damage and bodily injury caused by the policyholder. Property damage liability insurance covers repairs to the other driver's vehicle, a rental vehicle while the other person's car is being repaired, and damage to buildings, fences, or other structures. It also covers damage to personal property, such as electronics or belongings inside a vehicle, and legal fees if the policyholder is sued for property damage. Bodily injury liability insurance covers payment for others injured in an accident, including medical bills, prescriptions, lost wages, and pain and suffering, and legal fees if the policyholder is sued for injuries they caused.

Medical payments coverage

MedPay is particularly useful if you are concerned about affording medical bills after a car accident. It can also help cover out-of-pocket costs associated with health insurance, such as deductibles and co-pays. The coverage limits for MedPay typically range from $1,000 to $10,000 and should be based on your health insurance deductible and expected out-of-pocket costs.

While MedPay is not offered in every state, similar coverage may be available through personal injury protection (PIP) policies. PIP coverage, however, may be mandatory in no-fault states, where drivers must file claims with their insurance companies regardless of who is at fault in an accident.

It is important to note that MedPay does not cover lost wages due to injuries sustained in an accident. Additionally, it does not cover injuries caused to other drivers. When considering MedPay coverage, it is advisable to review your health insurance plan and assess the potential costs of accident-related injuries.

Frequently asked questions