Erie Insurance Auto Liability Coverage: Maximum Protection?

Erie Insurance is a Pennsylvania-based insurance provider that offers some of the most competitive auto insurance rates in the country. The company was founded in 1925 and has since expanded to offer policies in 12 states and Washington, D.C. While Erie's policies are not available to drivers in every state, the company provides unique savings opportunities and benefits that are not always found in other typical policies. This includes First Accident Forgiveness, where there is no surcharge for the first at-fault accident presented on the policy after being insured with Erie for three years. In terms of auto liability insurance, Erie covers repair or replacement costs for the other driver's vehicle and property, as well as legal bills if the other driver or their insurance company sues. The minimum amount of liability insurance required varies by state. For example, in Ohio, the minimum liability coverage for bodily injury per person is $25,000, while the property damage minimum is $25,000.

What does auto liability insurance cover?

Auto liability insurance covers the costs of the other driver’s property and bodily injuries if you’re found at fault in an accident. This includes the repair or replacement costs of the other driver’s vehicle, as well as the repair or replacement of any other damaged property, such as fences, structures, or telephone poles. Liability insurance may also cover your legal bills if the other driver or their insurance company sues you.

Liability insurance is required in nearly every state, and each state sets a minimum amount of liability insurance that you need on your car. For example, in the state of Ohio, the minimum liability coverage for bodily injury per person is $25,000, the minimum for bodily injury per accident is $50,000, and the minimum for property damage is $25,000. However, it's important to consider that the state minimum may not be enough to protect you financially in the event of an accident. In 2016, the average liability claim for bodily injury was $16,110, while in seven states, the minimum bodily injury per person is set at $15,000.

It's important to note that liability insurance does not cover your own medical expenses, lost wages, or repair or replacement costs for your vehicle. To protect yourself in these cases, you would need to have collision and comprehensive coverage.

What does auto liability insurance not cover?

Auto liability insurance does not cover your own expenses in the event of an accident. This means that it won't pay for your or your family's medical bills or repairs to your car. It also doesn't cover your lost wages. Instead, liability insurance covers the expenses of the other driver or injured party, including their medical costs, repair or replacement costs of their vehicle, and repair or replacement of any other damaged property.

To cover your own expenses, you will need to purchase additional insurance types, such as personal injury protection, health insurance, or collision insurance.

Liability insurance is required by law in nearly every state, with minimum coverage amounts varying by state. It is important to note that the state minimums may not be sufficient to cover all costs in the event of an accident, and purchasing higher limits on your liability insurance can provide added protection.

In summary, auto liability insurance is designed to cover the expenses of the other party in an accident, while additional types of insurance are needed to cover your own expenses and repairs.

How much liability coverage is required?

Liability insurance is a requirement in nearly every state. Each state sets a minimum amount of liability insurance that you need for your car. For example, in Ohio, the minimum liability coverage for bodily injury per person is $25,000, $50,000 per accident, and $25,000 for property damage. However, the state minimum may not be enough to protect you financially. For instance, in 2016, the average liability claim for bodily injury was $16,110, while the minimum bodily injury per person is set at $15,000 in seven states.

Liability coverage limits work as follows: let's say you had a car accident and were at fault. The other driver was injured and taken to the hospital, and the bill came to $30,000. If your auto insurance had a bodily injury coverage of $25,000 per person and $50,000 per accident, the first $25,000 would be covered, and you would have to pay the remaining $5,000.

You can buy higher limits on your liability insurance, but this will increase your premiums. Many factors can affect the overall costs of your car insurance, including your credit history, driving record, location, and miles driven.

Erie Insurance offers some of the most competitive auto insurance rates in the country. The average annual insurance premium with Erie is $1,084, compared to the national average of $2,071. The quote you receive from Erie may differ depending on various factors. For example, minimum coverage is the cheapest option, and upgrading to full coverage will increase your rates. Age is another factor, with insurance rates decreasing as you get older, up to a point. Generally, men pay more for car insurance than women. Marital status also plays a role, with married individuals usually paying less for auto insurance. Your driving record is one of the most important factors impacting your insurance premium. A clean record grants you access to the best insurance rates, while an at-fault accident, speeding ticket, or other violation on your record can increase your rates.

Liability coverage limits explained

Liability coverage limits are the maximum amount a car insurance policy will pay after a covered accident. Once that limit is reached, the policyholder is responsible for paying the remaining costs out of their own pocket.

Liability coverage is required in every state. It helps pay for property damage, medical expenses, and other damages to another person and their vehicle when the insured person is legally obligated to pay due to causing an accident.

Liability coverage is broken down into two parts: bodily injury and property damage. Bodily injury helps pay for covered medical expenses, lost wages, compensation for pain, and more for another driver and their passengers. Property damage helps cover damages to their property.

Auto liability coverage limits are typically written out as three numbers, such as 25/50/25. This means there is a $25,000 limit per person for bodily injury in an accident, a $50,000 total limit per accident for bodily injury, and a $25,000 limit per accident for property damage.

For example, if you have auto insurance with liability coverage limits of $50,000/$100,000/$30,000, these numbers are broken down as follows:

• $50,000: The maximum amount your insurer will pay for bodily injuries per person.
• $100,000: The total amount your insurer will pay for bodily injuries per accident.
• $30,000: The maximum your insurer will pay for property damage per accident.

The minimum liability coverage required varies by state. For example, in Ohio, the minimum liability coverage for bodily injury per person is $25,000, bodily injury per accident is $50,000, and property damage is $25,000. In Colorado, the minimum coverages are $25,000 for bodily injury or death to any one person in an accident, $50,000 for bodily injury or death to all persons in any one accident, and $15,000 for property damage in any one accident.

It is important to note that the state's minimum coverage may not be sufficient for financial protection. In such cases, one can opt to buy higher limits on their liability insurance, which will increase the premium but provide better protection.

Can you buy higher limits?

Yes, you can buy higher limits on your liability insurance with Erie. This will increase your premium but will give you the peace of mind that comes with better protection. For example, in the state of Ohio, the minimum liability coverage for bodily injury per person is $25,000, but the average liability claim for bodily injury was $16,110 in 2016. In this case, the minimum coverage might not be enough to protect you financially.

If you purchase a higher limit on your liability insurance, you will pay a higher premium. However, many other factors can affect the overall costs of your car insurance. These include your credit history, driving record, location, and the number of miles you drive.

If you want to lower your premium, you can choose a higher deductible and bundle your auto insurance with home or renters insurance.

Frequently asked questions