What Does Liability Auto Insurance Cover? |
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 There are two different parts to a Liability car insurance policy. The first part is known as Bodily Injury which pays for injuries sustained by a third party where the policyholder is found to be at fault up to a specified limit. The second part is Property Damage which will pay for damages caused by the insured to another person's property up to the limits stated on the policy.
In addition, Bodily Injury coverage can compensate another party for such items as; medical payments, lost wages, pain and suffering and loss of consortium resulting from an accident caused by the insured. There are two limits stated on this part of the policy; the first is the amount that the insurer will pay in the event that one person is injured and the second is the amount that the insurer will pay per occurrence. The amounts are usually seen in a format such as 25/50 and represent per thousand.
Property Damage coverage is usually used to pay for damages caused to another person's automobile, but it can be used to pay for other types of property as well. For instance, if a policyholder was to accidently back into another person's fence, the insurer will pay for the damage up to the limits of a policy. This limit is also represented by a digit such "15" which also represents thousands. When combined with Bodily Injury, the limits will usually be shown as 25/50/15 on a policy.
One should also be well aware that neither of these parts of a policy will pay for injuries or damages sustained by the policyholder. For this one would need to purchase additional types of coverage to cover potential losses.
How Much Does Liability Car Insurance Cost?The cost of liability auto insurance can vary due to many reasons and factors discussed below that carriers evaluate when insuring a driver and vehicle. An effective way to find out how much it would cost for a particular individual is to obtain quotes from insurers in order to see what a motorist can expect to pay.
One of the key factors that determines the price of a policy is the amount of coverage desired or needed. Some states require motorists to maintain high limits of liability and others require quite a low amount. Some motorists choose to purchase higher limits even if their state's requirements do not require them to in order to protect their assets. This will have a direct effect on premiums and it is important to compare rates to find the best deal.
Additional items that are used to calculate rates is the driver, driving record, type of vehicle and place of residence. The driver is evaluated for several reasons. Age, gender, experience and driving history are all used to rate drivers because this indicates the risk that they pose behind the wheel. The type of vehicle plays a part because some vehicles have safety features which help prevent collisions such as anti-lock brakes while other automobiles may be more prone to accidents according to statistics.
 In addition, a motorist's place of residence is used due to the fact that some particular areas have a statistically higher chance of traffic accidents and motorists may be more susceptible to collisions. Finding out how much one can expect to pay for car insurance can be done easily by obtaining various quotes from multiple companies. By doing so, this may also help an individual find the company that will offer them the best rate.
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