Most areas require drivers to maintain a minimum amount of liability vehicle coverage. Minimum requirements differ for every area. Making sure you know the requirements in your area is an important aspect of driving legally. Learn more about the details of liability coverage.
Every driver legally required to maintain liability coverage should know this policy does not cover their vehicle or their bodily damages in a wreck. If an accident occurs that is your fault, you will have to pay for your own damages, whether those damages are to your vehicle or they are for medical expenses. A liability policy only pays for the damages to the other drivers car and person.
When you are purchasing a liability policy, be sure to discuss with your agent the levels of this kind of coverage. In some cases, choosing only the bare minimum required by law is not the best choice. You will have choices in how much coverage you want. Coverage is usually offered as either split or non-split.
Split liability coverage simply means the division of a liability policy. Three numerical amounts are divided between parts of incurred damages paid for by your insurance company. The first number is for bodily injury occurring to one person. If you are in an accident with another vehicle and there is only one person in that vehicle, this is the part of your policy that pays for injuries to that person.
The second numerical part in a split liability policy is for more than one person injured in an accident. The third numerical part of the split policy description is for property damages. If you or your vehicle suffer damages in a wreck, you will be paying for those damages out your own money.
Many drivers feel more comfortable with a combined limit for their liability coverage. This kind of policy entails you selecting a set amount for covering all damages, whether they are to a person, persons, or property. Many companies offer different levels of this coverage, some as high as $300,000. If another driver chooses to sue your company for damages, this amount is what helps to pay court awarded damages.
Considering the chances every driver takes by simply backing out of their driveway, the cost of insurance coverage seems small compared to the cost of property and medical expenses that could pile up when an accident happens. Talk to your agent about how you can tailor your policy to make sure your needs are taken care of.