Car Liability Insurance is required by state law in every state of the U. S. This insurance is designed to pay for the damage that you cause to other vehicles, property or persons in an automobile accident. Each of the states has their own requirement for liability insurance. Some states have a very minimal amount of insurance that is required, while others have tried to update their requirements to closer meet the actual costs of an accident.
In addition to being required by your state’s laws, liability insurance also protects other properties that you may own. When damage is done or injuries are caused in an accident, if your insurance coverage is found lacking, you can be held personally responsible and your personal property can have liens placed against it. These liens can prevent your from getting a loan or must be satisfied before the property can be sold.
When you purchase liability insurance it the policy is often referred to in three numbers, such as 10/20/10. These numbers would indicate that the policy offers ten thousand dollars in personal injury protection for each person that is involved in the accident with a cap of twenty thousand dollars per accident. Additionally, the coverage would pay up to ten thousand dollars in property damage. While these limits seem low, there are states that actually have lower limits.
It is common for a states limits to be lower than the actual amount of insurance than is needed. A good insurance agents can help you to know the correct amount of insurance to protect you other investments.
If you are unsure of the required amount of liability insurance that is required by your state, you should check with your department of motor vehicles. They can let you know the requirements for your state. In addition, you should check to see what the penalties are for driving without insurance. In many states, the insurance company is now required to report to the DMV if you insurance lapses for even one day.
States are developing very stiff penalties for persons caught driving without insurance. In some states your vehicle registration can be canceled and in other states your actual driver’s license is canceled. While the first offense may have a lower penalty, if your insurance is canceled a second or third time, it can cost you dearly. Your vehicle can be impounded for 180 days and you can be billed for the storage fees on the third offense in some states.
If you do not have liability insurance, you can get quotes using your home computer and the internet. Compare those quotes in order to find the best prices and coverage for your vehicle. There may be several hundred dollars per year difference in the same coverage from different companies.
If you want to keep the cost of your liability insurance low, learn to drive defensively. This can save you money in a couple of ways. If you drive defensively, you are less likely to get a traffic ticket. In addition, you will avoid accidents. In addition to saving money you may save your own life or the life of family members.
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