Basic Liability Auto Insurance

Shopping for automobile insurance can be confusing for almost anybody, especially if it is your first time getting covered. The main reason people get confused is because they are unsure of the type of auto insurance to get, in addition to the amount of coverage. While collision and comprehensive ins are optional, you must purchase a minimum amount of basic liability auto insurance in all but one state. New Hampshire is currently the only state that does not mandate liability coverage for drivers. The amount of liability car insurance you need to get varies state by state. You should check out your state’s requirements before you go out and buy a policy. Insurance laws change from time to time, so even though you heard a set of numbers 3 or 4 years ago, those minimums could be much higher today. First, though, let us delve into this important insurance and what it covers.

What exactly is Liability Car Insurance and what does it Cover?

The most basic type of coverage you can get for your vehicle is the liability. As the name implies, this coverage will kick-in after you cause a crash, and there are damages to the other person, both physical and property. The main thing you need to know is it does not compensate you for damages to your car or injuries you might sustain in the incident you were at-fault. Liability insurance is so limited that is almost always the cheapest car insurance policy you can buy. Just remember, that while the policy itself is inexpensive, getting into a super expensive accident that you were responsible for could wreck you financially, this is because the damages would more than likely far exceed the coverage of your policy.

The Main Reason you Should Buy Liability Auto Insurance
The most important reason you should get this coverage is because it is mandated by law. If you get caught driving without insurance, you could face stiff penalties and even have your car impounded. Even worse, if you drive without insurance and get involved in an accident, you will most likely get sued, this means you could have your wages garnished for years to pay what you are liable for, as a result of the accident. Getting covered will protect you from possible litigation up and to the amount of your policy limits, this is why it is so important to buy insurance based on the assets you have accumulated. If you have $100,000 in the bank, make sure you have a policy that covers you for most, if not all of the $100,000 you’ve saved.

Liability Insurance Ratios Explained

There is a set of numbers that you should familiarize yourself with that pertain to the coverage amounts. Here is a brief outline of each number in the set.

Let’s say an agent advises you to buy a 50/100/30 policy.

* 50: This first number is the maximum amount of $50,000 that would compensate the passengers in the vehicle you hit and also passengers in your car per injury.

* 100: This next number is the total amount your policy would pay for all injuries sustained in the accident

* 30: Lastly, the 3rd number in the set if the maximum for property damage that would be paid, in this example $30,000.

You might ask what would happen if you exceed those limits? The answer is you are still liable and will have to pay. This is why it is so important to get as much coverage as you can afford.

You can buy liability coverage all over the place, from agents to brokers to on the web. Every licensed auto insurance provider will be able to sell you this outstanding coverage. You might want to combine it though with other protection, like medical payments and uninsured driver coverage. There are several state’s that require you to purchase uninsured motorist protection. Also, remember that liability is only a bare minimum policy. Typically, if a person is on a very tight budget and is driving an older car not worth much at all, it makes sense to get it.

However, if you have assets that you need to protect along with an expensive automobile you have invested much money in, you should consider adding collision and comprehensive onto your policy. You can offset the additional expenses by getting a higher deductible. This one tip will bring your premiums down about 15%, but you need to save up the amount of your deductible in case you ever get into a crash and need to file your claim. You can also save a lot by bundling your auto and home insurance together, which will also give you one convenient bill to pay each billing cycle.

How to Get Cheap Liability Auto Insurance
The best place to get cheap liability auto insurance is on the web. Make sure you get multiple auto quotes, so you have a large sample of different rates to choose. You can use free quoting sites like good to go insurance, which will give you up to 10 quotes in about five minutes. There is no obligation to buy a policy, and only premier insurers are quoted. Get your free car insurance quote today and see how easy you can save hundreds.