Whether you currently have a vehicle or are planning on getting one, you will need to become familiar with liability auto insurance. This is because it is required of every vehicle on the road. The rates for coverage vary by state, with some requiring their drivers to have more than others. For example, while the minimum requirement for the state of California is 15/30/5 ($15,000 for injury/death to one person, $30,000 to more than one person, and $5,000 for property damages), the minimum required in Alaska is 50/100/25, which is more than double.
What is Liability?
One thing you should never do is hesitate to ask your agent questions. The more you know about how your insurance works, the better prepared and more comfortable you will feel. Liability insurance is one of those precautions you need to have even if an event to use it never arises.
Even if you are involved in a minor accident that is your fault it could add up to a big problem if your vehicle is not properly covered with insurance. What liability auto insurance does is pay for any damage you do to the other person. The coverage would include the damage done to their vehicle, or the driver if they had injuries. Having insurance keeps you from personally having to pay those bills, up to the capped amount of your policy, which could include property damages, medical expenses, or even incidental losses that the other person has.
Many people that go without the insurance think they are saving money. Yet in the long run, they may find that it is far more costly to take the chance and pay the bills that can come from an accident and no coverage. Also, not following the law in having the minimum insurance amount can result in a suspension of your registration and driver’s license if you are still driving the vehicle. It can also lead to higher insurance premiums later on.
Shopping Around
While the states may individually specify the minimum amount of liability coverage that you must have to drive, they don’t set the rates that the insurance companies charge. You can speak with an insurance agent to see what options are available to help keep the rate lower. Get a comparison quote to see who offers a variety of discounts, including to those with good driving records and who are good students. Whatever you do, don’t pass up on liability insurance to save money.
