Most states across the country require the owner or proprietor of a motor vehicle to carry minimum liability insurance in an auto accident.
liability insurance
Liability insurance provides the insured with protection against claims resulting from injuries and damages to people and property caused by an auto accident, for which compensation benefits may be requested.
The policies of this type of insurance cover both the legal costs and the compensation or indemnity payments for which the insured party would be responsible if they were legally guilty of a traffic accident. Intentional damage and contractual liabilities are generally not covered in these policies.
Types of Liability Insurance Coverage
There are two types of liability insurance in the event of a car accident:
1. Bodily Injury Liability
It covers costs resulting from injury to a person. These may include hospital care, lost wages, and pain and suffering from the accident.
2. Property Damage Liability
Covers costs resulting from property damage or loss. Examples of property damage include payment to replace landscaping and mailboxes and compensation for loss of use of a structure.
As the law requires, car drivers must carry at least a minimum of bodily injury liability and property damage liability coverage.
Some states do not require both or have other limitations.
Each state sets its minimum requirements for each type of coverage. Even in “no-fault” states, liability coverage is almost essential.
What does liability insurance not cover?
Liability insurance generally does not pay for auto damage or injuries to the policyholder at fault or fault.
If you want to extend your auto insurance coverage, talk to your insurance agent and get a quote to develop your medical expenses or include your vehicle’s repair. To show you the insurance options that can work for you and be calmer when driving.
Having a significant car insurance policy will help you if you require specialized medical treatment if you are responsible for a traffic accident. Get a car insurance quote from an insurance company!
Suppose you are injured, or your property is damaged in a car accident for which you are not responsible. In that case, the participating attorneys of Grupo MedLegal®️ will help you obtain compensation for your accident!
How to identify liability insurance coverage?
Liability insurance is commonly shown in the following format:
20/40/10. The first two numbers refer to bodily injury liability limits and the third number to property damage liability.
In this example, 20/40/10 means coverage of up to $20,000 for each person injured in an accident, up to a maximum of $40,000 for the entire accident, and $10,000 of property damage coverage.
Why do US states not require car insurance to drive?
In the United States, some states do not require a vehicle owner to have auto insurance, and these are:
States that do not require the vehicle owner to have auto insurance are:
- Virginia, where an uninsured motor vehicle fee can be paid to the state.
- New Hampshire and Mississippi offer vehicle owners the option to pay cash bonuses.
The privileges and immunities clause of Article IV of the United States Constitution protects the rights of citizens in each state when traveling to another.