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When you have liability coverage, you will be able to lay a complaint according to your state’s regulation whenever you are faced with any incident even if you are the one at fault. The advantage of this is that you will be able to pay for the hurt you cause others when you are at fault in the event of an accident and it will not run you down financially.
There is a very clear need for you to get liability insurance when you are driving an automobile because it helps keep costs down when you get involved in accident that leads to property damage or bodily injury. You might think that it is easy to get away with not buying liability insurance, but in the long run, it would be to your detriment. The main reason behind purchasing this type of insurance is to cover for expenses that will arise when you are the one at fault in the event of a car accident.
Two Types of Liability Coverage
There are two types of liability coverage will be discussed in this article:
1. Bodily Injury Liability
This coverage covers for expenses that will be extended to people that were injured on your account. It could be that the people injured were riding in your car as long as you have the bodily injury liability coverage the people injured will be treated on your account. This type of coverage can cover for so many things which include lost wages, medical expenses, rehabilitation costs, physical therapy and hospital bills.
When it comes to bodily injury liability coverage, legal costs are always covered, but you have to make sure that medical and legal bills are part of your coverage. As for legal bills, it includes attorney fees, bail bond fees and any other thing involved in the legal part of the accident. When medical bills are involved, it could include long standing injuries and any other future medical treatments. A fee covering emergency personnel that responds to the accident is also included in the bodily injury liability coverage. When it comes to covering funeral costs; that is if the other party was killed in the accident, it will be covered by the coverage.
2. Property Damage Liability
The second type of coverage is property damage liability. This type of coverage covers any property that was damaged in the course of the accident. When properties are involved, it’s not just about the car, but also covers all other properties outside the vehicle during the course of the accident. This type of coverage can cover for many things also like fences, light poles, buildings, mail boxes and utility poles.
When it comes to property damage liability coverage, properties that were damaged outside the scene of the accident and the car also would be taken care of by the insurance company. It might be that in the course of the accident, you hit a building or any other tangible item it will be covered under the legal fees attached to the accident. If it comes down to replacing or repairing the car of the other person, storage fees incurred when the vehicle needs to be towed and rental of another car that was not at fault during the accident are also covered by the liability insurance.
The Limits of Liability Coverage
You should have it at the back of your mind that when you are using any of these forms of liability insurance coverage, be it property damage or bodily injury, there are limits attached to them. This involves the amount of money your insurance company is to pay out in the event of an accident. You should also take note that lowering your coverage is a bad idea as this may negatively impact on you as time goes by.
You should know that there are different ways to lower your auto insurance premiums so much that you could have extra for other trivialities. It is very easy and fast to lower liability insurance coverage but there is a reason why it is not good to take the easy way out. When you say something is easy doesn’t mean that it is the best that is why it could be very dangerous when you take the wrong step in lowering your insurance premium. If you are involved in anything serious, it is very important to protect your assets.
Regardless of the part of the country you live in, always make sure you are on the right side of the law when lowering liability coverage. When builders and general contractors are involved, it is very necessary to get this type of coverage because this will put them on the safer side. Without having one, it would be very difficult to break free from a court case alleged against you as a general contractor. This is because you will also have to hire sub-contractors like builders, roofers and other household workers so whenever they get involved in an accident during the construction, your liability coverage would be able to cover their expenses; medical and otherwise. Having this form of coverage is non-negotiable for general contractors and builders as it will become very crucial when you least expect.
The Importance of Liability Coverage
It is very important to get liability coverage because one can never tell when an accident would occur. The fact is that accidents can occur at any given time and if you are not prepared you might be at a loss when such occurs. If you are caught in the midst of this when you have not gotten coverage, you will end up being responsible for all damages and hurt done to people and properties during the accident. As far as you own a car, make sure you take out time to purchase liability coverage so as to save yourself from the risk of running down financially. Remember that most states often ask that you have liability insurance coverage just to make sure that you are on the right side of the law.