The roads are not as safe as they used to be. In recent years, the number of accidents has gone up and while auto insurance can protect you, what about the damages claimed by the other party that was involved in the accident? In all such cases, it is your liability to pay for any such damages. This is where liability insurance can come to your aid.
Liability insurance can be defined as the protection from the money you are legally bound to pay because of any damage, either physical or to the property of another person. In other words, if you are involved in an accident and if there has been any property damage or physical harm caused to another person, your insurance company will pay the money that is owed, on your behalf if you have liability insurance. If such an eventuality really arises, you may be sued for the total cost of damages that may include medical and hospital charges, rehabilitation charges, property damages, loss of any income and even for the suffering and pain caused. But with liability insurance, you will be naturally protected.
Another Reason That Makes Liability Insurance Such A Great Idea
Do you know that the cost of liability insurance is much less than the cost of a full coverage? In full coverage insurance, payment must be made not only for your vehicle, but also that of the other that was involved in the collision. Plus, there is the cost for any property damage and/or medical expenses as was mentioned above. Liability insurance however deals with just the losses of the other party. Here the priority is the claims arising out of any damages to a third party.
Two Types Of Liability Insurance
From the above discussion, we can thus say that there are two distinct types of liability insurance and they are..
- Physical injury liability that protects you when a person got injured, and perhaps even killed in an accident in which you were involved.
- Property liability when the property of someone else is damaged such as the mailbox, fence etc.
Thus you see, vehicle insurance is not enough - you also need liability insurance.
Regulations In The US For Liability Insurance
In most US states, car insurance related to liability is a must but the regulations tend to differ from one to another. In Virginia, you will have to make a payment of $500 every year for each vehicle if you do not have liability insurance. And in North Carolina, it is a must that you have it because otherwise, even the license cannot be issued to you. However in New Hampshire, it is not mandatory for you to have it. In many states there is a requirement for minimum liability insurance where $20,000 is the amount for injuries, $10,000 for any damage to property and $40,000 for all injuries covering everything.
It is in your own interest to go beyond auto insurance. You must ask for liability insurance to protect yourself from the unforeseen - because you never know what can happen on the road.