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Omega Insurance Group
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>Liability car insurance is critical to your financial security. These policies offer excellent coverage when the policyholder causes damage or injury in a car accident. They cover a wide array of legal and financial responsibilities while also providing greater peace of mind for fellow drivers. Let’s take a moment to explore the ins and outs of this essential insurance policy.
Liability coverage is an auto insurance policy designed to protect drivers when they cause a car crash and are responsible for damage done to others and property. When an insured driver causes an accident, liability insurance can cover some, if not most, of the repairs, medical expenses, and property damage incurred by other parties.
Keep in mind that these policies alone don't cover the same costs for the policyholder, which is why we also recommend holding collision insurance for your own vehicle. Luckily, some policies may help the insured driver pay the cost of towing, roadside assistance, and a rental car, if necessary.
If you caused damage due to negligent driving, then you may be held liable for some financial results of the accident. A good practice is to purchase a liability policy that covers an amount you can’t reasonably expect to pay by yourself.
It’s important to note that liability insurance is required by law in 49 states, with New Hampshire being the only exception. If a driver wishes to legally operate a vehicle on public roads, then they must hold the minimum liability coverage required by their home state. Fines are issued by local governments if a vehicle is operated without the proper liability insurance.
Policyholders must select two types of coverage to build a fully optimized liability insurance policy. First, bodily injury (BI) insurance pays for damages and medical expenses if the policyholder is liable for injuring another person. Second, property damage (PD) insurance covers damage to someone else’s property in an accident. Both options cover damages up to a set limit determined by the policyholder while meeting their state’s minimum coverage requirements.
Another type of automobile insurance required in 20 states is uninsured/underinsured motorist (UM/UIM) coverage. This policy ensures that you aren’t held financially accountable if a negligent driver causes injury or damage to you or your vehicle. Since 13% of drivers are uninsured, UM/UIM insurance is another necessary addition to every driver’s portfolio.
We recommend that our clients opt for the highest coverage limits allowed by their state. Consider the amount you may be liable for, as the number may be higher than your state's maximum coverage limit. If needed, you can also purchase an umbrella policy to cover any liability above your state’s maximum limit.
It’s also worth mentioning a few limitations of liability insurance policies. Depending on the law in one’s state, a policy with the highest coverage limits may be insufficient to cover the costs of any long-term medical care. Moreover, not all policies cover punitive damages resulting from an accident.
Given the ever-present risk of automobile accidents, every driver must have a liability insurance policy to protect themselves. When looking for the best quote, always work with a reputable insurer who can provide comprehensive coverage at a reasonable rate. Be sure to explore all your options, as different policies come with their own benefits, pricing, and limitations.
If you still need liability insurance or have any questions about your current coverage, then we encourage you to call or contact us online today. Our team is always eager to provide you with a free quote and help you find the right policy for your unique needs.
