There are 2 types of Auto Liability; Property Damage (PD) and the Bodily Injury (BI). There a number of advantages for each one.
For Property Damage, this will insure you that you will be covered for expenses of all properties that you will damage in a car accident. This would include damages you will cause on buildings, houses, fences or other vehicles. Imagine the amount it may save you if you do get into an accident and damage, say, a house. How much would it cost you to pay for the repair which your car caused? And it doesn’t stop there. What if the owner of the house will decide to sue you for damages? Property Damage Liability Insurance will cover all the legal fees that you will incur if you are sued. Although it is limited to covering expenses for other properties than your own car, it is assuring to know you will be saving big bucks in the unfortunate event of an accident.
If you decide to purchase Bodily Injury Liability Insurance, you will be covered for injuries or death that you will possibly be faced with in a car accident where you are at fault. It will exclude, however, injuries that you will have or people inside your car at the time of the accident. You will however be spared from medical expenses, funeral expenses, pain and suffering, or loss of income that will be incurred to the aggrieved party. In addition to this, legal fees for attorneys and court fees will also be covered if you will be sued for damages.
It is very important to have Bodily Injury as well because if you don’t have this, you may be forced to sell your properties to pay for very high fees of medical bills, funeral bills and not to mention legal fees in the even that they will sue you for all the damages that you have caused them.
If you do not have these insurances, you may be fined, and your license will be suspended and worse, you may be put behind bars. In almost all states, Liability is mandatory. It is now up to you to choose your limits. There are 2 limits to choose from. Single Limit and Split Limit.
Single Limit Liability covers all expenses in one amount. All property damage and bodily injury will share in one single amount.
Split Limit Liability splits payments into 3: Bodily Injury per Person/Bodily Injury per Accident/Property Damage. In amount it could be like this: $100,000/$300,000/$100,000 or 100/300/100 coverage. It is now up to you to choose what will best suit you. Bottom line here is that we should protect ourselves and our assets from bankruptcy and so we need to have Car Liability Insurance now!
Photo Credit: Mickey B. Photography
