When you are at fault in an accident that results in another person’s injury, or that causes damage to their property, you have to take steps to make things right. One way that is done is by using the auto insurance liability coverage you have. This coverage can help to pay for medical care, as well as repairs for others who were involved in the wreck. If this insurance is not present, then you will be legally required to pay those costs out of your own pocket.
This is why virtually every state requires that drivers maintain a minimum amount of liability coverage, prior to being able to drive it. This type of coverage will provide protection for the driver, as well as the other party who was injured.
The Protection Offered by Liability Coverage
This type of insurance covers damage and medical bills for the other party. This means that it does not pay for repairs or injurie to your own vehicle. You may wonder, how it actually helps you. It works to protect your finances.
When you are the cause of a wreck, you will usually be assigned a specific amount of liability for being able to reimburse others for the proper damage or injuries that you cause. The fact is that repairing and replacing someone else’s vehicle that is damaged in a wreck can often ruin you financially, especially in cases when more than one vehicle has been involved.
Understanding the Numbers
Liability insurance is usually expressed in a three-number-ratio. An example of this would be 50/100/25.Each number represents a different part of the coverage. The numbers mean as follows:
* The first number is the limit for individual injuries.
* The second number is the bodily injury coverage for the policy.
* The third number represents the limit for the property damage.
What Happens if the Cost Exceeds the Limits?
In some cases, the repair or replacement of the vehicle will exceed the limits of the policy. At this point it will be up to you to pay the difference. This is why it is important to Compare Auto Insurance rates and find the highest amount of liability you can afford. This will help ensure that you are fully covered and that if an accident does occur you will not have to pay out of pocket for the damages.
