Coverage You Can Afford: Auto Liability Insurance

by Darwin on July 28, 2016

Car insurance is a requirement for all drivers. While the level of car insurance you purchase is up to you, states set minimum car insurance requirements for drivers. All states require drivers to have liability car insurance coverage. The requirement for the minimum amount however, varies.

Figures indicate that there are more than 10 million accidents that occur in the U.S. every year. This means that there is an average of 27,000 accidents occurring daily in the country. The chances of being in accident, even if not serious, are high for drivers in the U.S.

Car insurance is not only important to ensure that you meet the requirements of the law, but also to ensure that you don’t have to face huge expenses in case of an accident. A study of auto insurance claims in 2013 put the average auto liability claim for auto accidents involving bodily injuries at $15,443. That would be a huge bill to pay out of your own pocket. It would be great to have insurance coverage in such instances.

What liability insurance is and what it covers

When you’re involved in an accident, the person responsible for the accident is held accountable for the damage or injuries resulting from the accident. Therefore, if you caused the accident, you will be held liable for injury and damage costs resulting from the accident.

These costs include the repair cost for the other party’s vehicle as well as medical bills for treatment of any injuries to the other party and their passengers at the time of the accident. These can be very expensive. You risk losing your assets in lawsuits if you’re unable to pay these costs.

Auto liability insurance coverage protects you from these financial losses. It pays for the damage or injuries caused by you to the other party.

Advantages of liability coverage

  1. Protection from financial losses

Liability insurance frees you of having to pay for damages or injuries from your pocket. You can have peace of mind that your insurance will cover the huge expenses that result from the accident.

  1. Save money on insurance

There are various options for insurance. Liability insurance is the cheapest type of coverage available. With many expenses to deal with, it makes sense to save money on your car insurance while protecting yourself from huge financial losses. Liability insurance is a great choice when on a tight budget.

  1. Great value

Comprehensive insurance is great if you’re driving a brand new, expensive car. However, what if your car is a lemon? You don’t have to spend an arm and leg to insure an old car. Insurance companies also prefer not to spend a lot of money on damages to a car that is well past its prime. Liability insurance makes sense when driving a car that is on its last leg.

How to reduce the cost on your insurance

As you search for auto liability insurance coverage, you’re likely to be searching for the cheapest insurance you can get. However, this doesn’t always provide you with the cover you need. The following are better ways to lower the cost of your insurance:

  1. Increase your deductible

The deductible is the amount you pay from your pocket before the insurance policy kicks in. Increasing your deductible will mean reducing the amount of money you pay toward your premium. You will however have to pay much more from your own pocket in case of an accident.

  1. Drive less

Lowering your annual mileage lowers your premium. Auto insurance providers will consider you a lower risk.

  1. Work on improving your credit score

A good credit score increases trust with your insurance provider. Improving your credit score will result in a lower premium.

  1. Keep your driving record clean

A driving record with many violations indicates high risk to insurance providers and causes them to increase your rates.

Liability insurance offers an affordable option for car insurance. Compare different insurance providers to be sure you’re getting best deal possible.

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