Understanding The General Liability Car Insurance Coverage

General liability car insurance coverage is a type of insurance that protects you from financial losses if you're involved in an accident or incident while driving.

It's essential to understand that this coverage is not the same as comprehensive or collision coverage, which only cover damage to your vehicle.

If you're involved in an accident, general liability car insurance can help pay for damages or injuries to other people or property.

In most states, you're required to have some form of liability insurance to drive a vehicle.

General liability car insurance is one of the individual benefits that comprise a traditional auto insurance plan.

It helps you in the event of a car accident, where it pays for damages associated with the incident. In most states, accidents are investigated and the actions of each driver determine who is responsible for the accident.

The party found "at fault" will usually pay for damages out of their liability car insurance coverage. This can happen if you're driving distracted, hit the brakes too late, or drive through a red light.

Your actions immediately before a car accident can determine if you're "at fault", which can increase your insurance premium.

Liability car insurance has dollar limits on each of its components, depending on the level of coverage you choose when you buy the policy.

The liability limit for property damage is the maximum amount of coverage for damage done to property, and any costs that exceed this limit become the responsibility of the at-fault driver.

The per-person limit is the maximum amount that the insurance company will pay out for each individual who has been injured in an accident, and this limit is typically part of the bodily injury liability coverage.

The average bodily injury claim in states where a party can be assigned fault was $18,417 in 2019, highlighting the importance of choosing sufficient liability limits.

Having enough liability insurance is crucial, as not having enough can leave you personally liable for the other driver's damages, including medical bills and property damage.

You may want to consider purchasing higher liability limits, especially if you have assets that you want to protect, as the minimum liability limits required by your state may not be enough to cover the costs of a serious accident.

The bodily injury per person limit covers injuries if you are found at fault, and can pay for medical bills, doctor's bills, or visits to specialists up to the maximum limit per person.

In some states, the minimum liability insurance requirements are as low as $15,000 in bodily injury per person coverage and $5,000 property damage liability per accident coverage, which may not be enough to cover the full claim in the event of an accident.

Each state sets a minimum for how much liability coverage a motorist must carry, which can vary depending on the state. For example, a state might require all drivers to have liability insurance that covers $25,000 for injuries to one person.

Most states have "tort liability" laws, which require drivers to hold liability car insurance for the vehicles they drive. This means that if you're found responsible for a car accident, your auto insurance benefits must pay for bodily injury of the individuals injured as a result of the accident.

Drivers can typically buy more liability insurance than their state's required minimums, and it's often smart to do so since medical bills can be very expensive. This can help protect you from costly lawsuits.

In "no-fault" states, drivers are required to hold policies with "personal injury protection" benefits in line with their state requirements. These states include 12 states, Puerto Rico, and Washington D.C.

You can still purchase liability car insurance coverage if you live in a "no-fault" state, even if you're required to have personal injury protection benefits. This can help you avoid costly lawsuits by paying for the other party's injuries that are not covered by their personal injury protection benefits.

The more liability car insurance coverage you purchase, the less you'll have to pay out-of-pocket in the event that the other party's expenses exceed your coverage limits.

You may be legally responsible for paying those additional costs if you don't have sufficient coverage.

It's a good idea to speak to a licensed agent to ensure you get coverage that meets your needs.

Liability car insurance is designed to cover the financial costs of an accident if you're found at fault, up to the limits of your policy.

Liability car insurance has three main components: bodily injury liability coverage, property damage liability coverage, and medical payments coverage. Bodily injury liability coverage helps pay for the medical expenses of anyone injured in an accident you caused, including lost wages and pain and suffering.

Property damage liability coverage, on the other hand, helps pay for the cost of repairing or replacing property that you damaged in an accident, such as another car, a fence, or a house.

Here's a breakdown of what each component covers:

Liability car insurance doesn't cover your own medical bills or property damage resulting from an accident. It also doesn't cover damage to your car caused by intentional acts by a third party, such as vandalism or theft.

Liability car insurance covers bodily injury and property damage costs if you're at fault in an accident, protecting you from significant financial loss. This type of insurance is essential for drivers to stay financially protected and legally covered on the road.

Each state has different minimum liability insurance coverage requirements, so it's crucial to ensure you meet or exceed these limits to be adequately protected. For example, in a state without no-fault insurance, having a liability car coverage with a bodily injury liability limit per person of $60,000 and a bodily injury limit per accident of $150,000 can provide sufficient protection.

Bodily injury limits per person and per accident are crucial to understand when it comes to liability car insurance. In the example given, the at-fault driver's liability was covered because each person involved in the accident had medical expenses of under $60,000, and the total costs for everyone involved were less than the per-accident bodily injury limit of $150,000.

If you get pulled over and don't have the state minimum coverage, you may get a ticket or be forced to pay fines for not carrying the required liability insurance. States set mandatory minimums for car insurance liability coverage, so it's essential to check your state's requirements.

Here are some key facts to remember about liability car insurance: