When you are shopping for automobile insurance, it is important to understand the different types of coverage that are available. One type of coverage that is important to understand is liability insurance. Auto Liability insurance law protects you if you are involved in an accident and are found to be responsible for damages or injuries. It is important to have enough liability coverage to protect yourself from potential lawsuits. You can find out more about liability insurance and other types of coverage in this blog post of powerpacplus.org.
What is Auto Liability Insurance coverage?
Liability coverage covers for damage to another person’s property and/or injuries caused by an accident in which you are at fault. Most states require this coverage in order for you to lawfully operate your vehicle.
- Property damage and physical harm are the two aspects of liability coverage.
- Damage to another person’s property is covered by property damage coverage.
- Others wounded in an accident are compensated through bodily injury coverage.
- We can assist you in obtaining the coverage you require.
If you are determined to be at fault in an automobile accident, liability insurance protects you. Assume you make a left turn without checking your blind area, and you fail to notice an oncoming car, causing you to collide with it. Not only is the second automobile damaged, but the driver claims to be in discomfort in their neck. You won’t have to pay because your liability insurance will cover the other person’s expenses. The following items are covered under liability insurance:
- Medical expenses
- Wages that have been lost
- Suffering and pain
- Expenses for the funeral
- The expense of repairing or replacing the other driver’s vehicle
- Any other damaged property that needs to be repaired or replaced.
If the other motorist or their insurance company sues you, liability may reimburse your legal expenses.
What happens if my car does not have Auto Liability Insurance coverage?
When you have motor vehicle insurance liability coverage and when your coverage ends, your insurance company must notify the DMV online. This is true regardless of whether you’ve switched insurance companies, registered a new vehicle, or had your coverage reinstated. Your vehicle registration will be suspended, and your driver license may be suspended, if your insurance company fails to properly notify the DMV online.
Why do you need to have liability on Car, Truck and Motorcycle?
Auto Liability insurance is required for every New York State registered motor vehicle that you drive on a public road or highway in the state, or that you enable someone else to drive. Vehicles registered outside of New York State but operated in the state must abide by the state’s financial responsibility statute. This liability insurance is required by New York State law to protect you and other highway users who may be involved in an accident with you:
- Unless it’s a motorcycle, your registered vehicle must be insured even if it’s in storage or not being driven. If you own a motorcycle, you must have insurance coverage in place whenever you ride it on a public road or highway.
- Insurance and registration for your vehicle must always be in the same name. You should have your insurance ID card in your vehicle at all times.
- Insurance firms may provide proof of motor liability insurance in either paper or electronic form. The electronic format must be able to be seen on a handheld electronic device.
- The insurance must be purchased from a firm that is licensed by the New York State Department of Financial Services and permitted by the Department of Motor Vehicles. Insurance from another state is not acceptable.
When your car is covered, your insurance company is required to electronically submit your coverage with the Department of Motor Vehicles (DMV). Your insurance carrier will also provide you with an insurance identification card that you may use to register your vehicle with the DMV. Your insurance ID card, on the other hand, does not show that you are covered. Your insurance company is required by state law to file coverage electronically.
How does it work?
Your liability coverage is frequently broken down into three figures that represent your responsibility limitations for bodily injury and property damage (the minimum limits required vary by state). In Illinois, for example, the minimum auto liability limits are $25,000/$50,000/$20,000. Here’s what those figures imply:
- Per person bodily injury: The maximum amount your insurance carrier will pay out for injuries is $25,000 per person.
- Bodily injury per accident: Your insurer’s maximum liability for injuries per accident is $50,000.
- Property damage per accident: The maximum amount your insurance will pay for damage to another person’s vehicle or property in a single collision is $20,000. Assume your liability limitations are $25,000 per person, $50,000 per accident, and $20,000 for property damage in the two scenarios below.
How much Liability Insurance do I need?
If you’re found to be at fault in an accident, a court verdict might wipe out your money, so make sure you’re well-protected. Add up all of your assets, including bank, brokerage, and retirement accounts, as well as the value of your home and any real estate. Subtract your debts from your entire net worth to arrive at your complete net worth. Because your overall net worth can expand, you should choose at least that amount for bodily injury liability. Keep in mind that physical injury claims are usually more expensive than property damage claims.
It’s worth noting that the cost of bodily injury liability insurance varies depending on the quantity of coverage and the driver, and the difference between the state minimum and $100,000 is frequently insignificant. Find out more about determining how much auto insurance you require. Our auto insurance calculator can also help you figure out what amount of coverage is best for you.
The Bottom line
We hope this article was helpful in providing some useful knowledge about Auto Liability Insurance coverage. When it comes to protecting yourself and your loved ones, it’s important to make sure you have the right insurance policy in place. At [company name], we want to help our customers feel confident that they are fully protected when something goes wrong. If you have any questions about Auto Liability Insurance or would like a free quote, please don’t hesitate to contact us. We would be happy to help!