Posts Tagged ‘property damage liability’

How Auto Insurance Liability Coverage Works

Wednesday, July 20th, 2011

Auto insurance liability protection is a financial product which is put in place to protect the policyholder from having to pay for damages he or she causes personally. It is also known as third party liability coverage, since it pays for injuries and damages incurred by the occupants of the other vehicle when an accident occurs.

This type of protection is required in most parts of the United States. Insurance companies will provide quotes to prospective buyers which reflect at least the minimum level of protection required by law. Consumers may buy a policy with a higher limit if they wish.

Bodily injury liability insurance pays for medical bills and rehabilitation costs for people who have been injured in an accident. It pays a funeral benefit in the case of a fatal accident.

Property damage is another type of liability coverage. It pays for repairs to the other driver’s vehicle, as well as the cost of fixing or replacing any public property damaged in the accident.

Both of these types of coverage will be included in a quote from an auto insurance company. The policyholder will be covered for damages he or she causes up to the policy limit chosen.

In a tort car insurance state, people who have been injured in an accident have the right to sue to receive compensation for their injuries and property damage costs. The insurance company will pay the claims and legal expenses for defending the claim.

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Posted in General Car Insurance |

Nebraska Auto Insurance Minimum Requirements

Tuesday, April 26th, 2011

Under state law, Nebraska auto insurance buyers must have a minimum level of protection in place. Since NE is a tort state, third party liability protection must be kept in place for drivers to stay legal.

Bodily injury liability coverage pays for medical bills and lost wages incurred by the occupants of the other vehicle when an accident occurs. The part of the policy also pays out a funeral benefit if the accident results in one or more fatalities. The minimum level of bodily injury coverage required in Nebraska is $25,000 to pay for the injuries and damage incurred by a single victim and $50,000 to pay for the damages of all people injured in the same accident.

Property damage liability insurance coverage is also required in this state. This is the portion of the policy which pays for the cost of repairs to the other driver’s vehicle in an at-fault accident. The minimum amount of this type of protection required under state law is $25,000.

While drivers must buy at least the minimum amount of coverage required by law, limiting the level of coverage to this amount alone may not be enough to protect a driver if the at-fault accident is a serious one. Once the available coverage has been exhausted, the driver will be responsible for paying any additional amount owing personally. To avoid this risk, a better choice is to buy a policy with a higher limit.

 

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Posted in Nebraska, USA |

West Virginia Car Insurance Minimum Requirements

Sunday, December 19th, 2010

West Virginia car insurance buyers must have at least the minimum level of coverage mandated by state law in place to drive legally in the state. All drivers must have third party liability and uninsured and underinsured motorist coverage in place.

Bodily injury liability insurance pays for the medical expenses and lost wages of the occupants of the other vehicle in an accident. It also covers rehabilitation expenses related to the accident.

Property damage liability coverage pays for the cost of repairs to the other driver’s car. It’s also used to repair other property, such as fences, mail boxes, sign posts and light stands.

Uninsured motorist coverage pays for medical bills and related expenses, as well as lost wages, incurred by a driver, his or her family members and any other occupants of his or her vehicle when the at-fault driver does not have insurance or cannot be identified. It also pays out for injuries sustained by pedestrians in a hit and run as well.

Underinsured motorist coverage provides an extra level of protection to people who have been injured in an accident. The at-fault driver’s coverage pays out first (up to the available policy limit). If this amount is not sufficient to fully pay for the damages he or she caused, the underinsured motorist coverage will pay the balance, up to the policy limit chosen by the policyholder.

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Posted in USA, West Virginia |

North Dakota Car Insurance Minimum Requirements

Friday, November 19th, 2010

North Dakota drivers are required to have at least the minimum level of liability coverage mandated by the state in order to drive legally. Third party liability coverage pays for damages you cause when you are involved in an accident, and it pays for medical bills, rehabilitation expenses and lost wages for the occupants of the other vehicle.

The minimum level of bodily injury liability insurance for injuries and damages of one accident victim is $25,000; at least $50,000 in coverage to compensate all victims of an accident. Along with the bodily injury coverage, drivers must purchase at least $25,000 in property damage liability insurance. This coverage pays for the cost of repairing the other driver’s vehicle. It also pays for repairs to property, such as telephone poles, light stands and fences.

While you must buy the minimum level of coverage in order to drive legally, you always have the option of buying a policy with a higher limit. It’s a good idea for you to do so. If you were ever involved in an at-fault accident, your car insurance policy will pay out up to the policy limit only. Any money owing above this amount must be paid by you personally.

When you are considering what level of North Dakota car insurance you need, the best choice is to buy the most coverage you can afford.

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Posted in North Dakota, USA |

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