Additional Liability Coverage for Cars and Beyond

Additional liability coverage can be a game-changer for car owners, but it's not just limited to vehicles. Many types of businesses and professionals can benefit from additional liability coverage, such as contractors, healthcare providers, and even dog walkers.

Having adequate liability coverage can protect your assets in case of an unexpected lawsuit or accident. For instance, a contractor who doesn't have sufficient liability coverage may be left with a large financial burden if a client sues them for damages.

Liability coverage can also provide peace of mind, allowing you to focus on your work or daily activities without worrying about potential financial risks.

Liability insurance is a must-have for Georgia drivers, and it's essential to understand the different types of coverage available.

The minimum limits of liability insurance required under Georgia law are Bodily Injury Liability and Property Damage Liability.

Bodily Injury Liability covers damages to others in an accident, with a minimum limit of $25,000 per person and $50,000 per incident.

Liability insurance can also help protect you in situations where you're alleged to be at fault, even if the other party's claim is unfounded.

Here are the minimum limits of liability insurance required under Georgia law:

Additional liability coverage can be a lifesaver in unexpected situations.

This type of coverage can help pay for damages or injuries caused by you or your business, even if the incident is not your fault.

The policy typically covers a range of scenarios, including accidents, property damage, and personal injuries.

In most cases, the coverage amount is capped at a certain limit, which is usually specified in the policy details.

This means you can't exceed that amount, even if the actual costs are higher.

Liability insurance limits are a crucial part of your policy, determining the maximum amount your insurance company will pay if you need to use the coverage.

There are two types of limits: split limits and combined single limits (CSL). Split limits consist of three numbers that describe the maximum Bodily Injury payment per person, maximum Bodily Injury payment for all people in the accident, and maximum total Property Damage payment for all property in the accident.

For example, if you choose split limits of $15,000/$30,000/$10,000, your insurance would pay up to $15,000 for each person injured in an accident, up to $30,000 for all people injured in the accident, and up to $10,000 for all property damaged in a single accident.

With a combined single limit, only one number is used to describe the limits for both Bodily Injury insurance and Property Damage insurance. In this case, there is no specific limit per person, just a total maximum that will be paid for all injuries and property damage you cause in a single accident.

If you select a combined single limit of $1 million, your insurance company would pay up to $1 million for all medical and injury-related bills and all property damage expenses that you caused in an accident.

Some states require liability limits above $1 million, and in those cases, you may be able to select limits up to $2 million to satisfy the contractual requirements of your employer.

It's worth noting that each state sets its own minimum liability insurance requirements, and you'll need to ensure you have at least the minimum amount required to meet your state's laws.

Here's a quick reference guide to help you understand the different types of liability limits:

Keep in mind that additional liability insurance or supplemental liability insurance will likely cover claims by other drivers regarding injury or death you've caused while driving the rental vehicle, claims for property damage you've caused in your rental vehicle, and damage from uninsured or underinsured motorists, depending on your state and insurance company.

If you're planning a road trip and need to rent a car, you might wonder if your car cover will fit. Car covers are designed to fit specific vehicle models, so it's unlikely that a car cover made for your own car will fit a rental car. However, some car covers are designed to be more versatile and can fit a range of vehicles, so it's worth checking the manufacturer's specifications.

It's also worth considering the cost of a car cover specifically designed for rental cars, which may be more expensive than a cover for your own car.

If you choose a split limit, your Property Damage insurance limits can't exceed your Bodily Injury insurance per person limits.

Additional liability insurance has its limitations. It won't cover bodily damage to you, family members, or other household members.

You should be aware that additional liability insurance won't cover property damage to your rental vehicle. This is an important exclusion to keep in mind.

Other costs that additional liability insurance likely won't cover include fines or other fees, damage sustained in Mexico, and property damage or bodily injury caused by prohibited car use, such as driving under the influence of alcohol or drugs.

Here are some specific exclusions to keep in mind:

Uninsured Motorist insurance protects you if an uninsured driver causes an accident that damages your vehicle or injures you or your passengers.

In Idaho, insurance companies are required to provide Uninsured Motorist (UM) Bodily Injury coverage and Underinsured Motorist (UIM) Bodily Injury coverage, unless a named insured has rejected the coverages in writing.

You have the option to reject either or both coverages, and insurance companies must provide a disclosure explaining the UM/UIM Bodily Injury coverages.

Excess UIM coverage limits provide coverage for medical injuries above and beyond what is paid by another party's insurance.

Difference in Limits or Offset UIM coverage limits reduce or eliminate coverage if you've already recovered from another party's insurance.

For example, if you have $25,000 in UIM coverage and the at-fault party has $25,000 in Bodily Injury Liability coverage, your UIM coverage won't provide additional coverage.

Conversely, if you have $100,000 in UIM coverage and the at-fault party has $25,000 in Bodily Injury Liability coverage, your UIM coverage covers any deficiency in the at-fault motorist's Bodily Injury coverage.

Here are the two types of UIM coverage limits:

Exceptions can be tricky, but let's break it down.

Your Property Damage insurance limits can't exceed your Bodily Injury insurance per person limits if you choose a split limit.

Some policies have specific guidelines, like the one mentioned earlier.

Your Property Damage insurance limits are directly tied to your Bodily Injury insurance per person limits.

You need to be aware of these restrictions to avoid any issues down the line.

If you're considering Additional Liability Insurance (ALI), it's essential to understand what's not covered. Your rental vehicle's property damage won't be covered by ALI.

There are specific situations where ALI likely won't cover costs, including property damage to your rental vehicle, fines or other fees, and damage sustained in Mexico. These exclusions can catch you off guard if you're not aware of them.

Bodily damage to you, family members, or other household members is also not covered by ALI. This means you'll need to rely on your primary insurance policy for these types of claims.

If you're using your rental vehicle for business purposes, ALI won't cover any resulting damage or injuries. Similarly, driving under the influence of alcohol or drugs will void your ALI coverage.

Here are some specific exclusions to keep in mind: