Automobile Liability Insurance

If you have car insurance then you have automobile liability insurance. This is the only coverage that is required by the states for an individual to carry. This is because they are looking out for the other driver and vehicle you may get into an accident with. And if it is your fault they want to protect the other driver and their property damage.

Auto liability insurance will cover bodily injury and property damage to the other driver and their vehicle, within the liability limits you have picked. Most states have a minimum limit you have to carry on your insurance. In most cases this is extremely inadequate if you are involved in an at fault accident. With the cost of medical care and the price to repair a vehicle, your liability limit can be gone in no time. And if you have a combined single limit, it will go to whoever gets there first. A combined single limit does not distinguish between bodily injury and property damage limits. They are both lumped together.

Depending on the accident it can work for or against you. As there is no separation between the bodily injury or property damage the entire limit can be used for one or the other. If you have a split limit policy it will give a specific limit for bodily injury and a specific limit for property damage. Once the limit has been reached and paid out, it is gone. And not just for the one accident, but for the entire term of the policy.

That means if you are in an accident and the liability limit is paid out in one loss, you have no more coverage for the rest of the policy term. You would have to purchase another policy to make sure you were covered. Besides the bodily injury and property damage coverages, there are other coverages that are considered part of the liability coverage. These are medical or personal injury protection (PIP) depending on where you live and uninsured and underinsured motorist. The PIP coverage is sometimes referred to as no fault insurance. There is some medical coverage built into this. And whether you are at fault for the accident or not, your PIP will pay the first part of your medical coverage if a result from an auto accident. If you were not the one at fault, once the medical limit is reached inside of the PIP coverage the other person’s automobile medical should pick up the difference.

Uninsured and underinsured motorist coverage is just what it says it is. It will protect you in the event you are involved in an accident with an uninsured or underinsured driver, you know the one that carries the minimum liability limits.

Before you purchase any car insurance it is a good idea to check with an insurance agent. They can explain each coverage and discuss with you what limit of liability would provide you with the best coverage for your situation. Talk with more than one agent before you make a decision, find one that you feel comfortable with.

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