Editor’s Note: We’re back on the mainland and exploring Athens today: checking out a Hamman bath house and drinking lots of Freddo Cappucinos. Athens probably isn’t on most people’s honeymoon list but it’s a pretty amazing city. It reminds me a lot of my time in Budapest and there is a ton to do and see that isn’t your typical touristy stuff. It didn’t hurt either that I was able to book us 3 nights at the Grand Bretagne in Athens using Starwood’s Cash and Points option 🙂 This hotel is one of the nicest properties I’ve ever stayed in and I’ll be giving a full report starting next week when we get back from our honeymoon.
Today, I’m featuring a post from fellow SoCal guy and blogging buddy of mine Gary. Gary is a financial expert who started MyCarInsurance123.com to help U.S. consumers navigate the challenges of finding cheap car insurance coverage. Check out his articles to learn how to compare policies, companies, premiums and discounts.
Every type of car insurance comes with its own pros, cons, sets of regulations and limitations with auto insurance companies. Liability insurance policyholders need to realize the importance of understanding their coverage when it comes to choosing a company and making a claim after an auto accident. Luckily, there are some simple answers to many of the most common questions about liability car insurance and coverage.
What Is Liability Insurance?
Liability car insurance is the most common type of auto insurance. It is comprised of three types of coverage: damage caused to other vehicles; injuries sustained by the other vehicle’s driver and passengers in an accident; and damages caused by you to property, such as structures, street signs, and homes, are covered in a good liability insurance policy.
Liability car coverage protects you from liability and pays for damages sustained by others. Alternatively, collision car insurance covers damages to your own vehicle. Some types of liability insurance are required by law for drivers to legally comply with state minimum car insurance requirements.
Bodily Injury Liability
Bodily injury liability insurance is one of the types of coverage that may be mandated for drivers in some states. Bodily injury liability insurance exists to protect the other driver and passengers in the event of an accident. However, like in other liability insurance situations, the accident must be the driver and policyholder’s fault in order to receive compensation.
Another way that bodily injury liability insurance can protect you is by providing legal protection in the event of a lawsuit stemming from the driver’s accident. In this case, car insurance companies will pay for legal representation to protect you during litigation.
In Case of An Accident
After collisions or accidents, it is sometimes obvious which party is at fault. The officer who writes the report generally asks enough questions to determine what exactly happened. Whether the fault is determined at the scene of the accident or not, the same basic rules apply. All parties to the accident should exchange personal information and get copies of the police report as soon as it is available.
If The At-Fault Driver Only Has Liability Insurance
As a way of getting cheap car insurance from the best company, many drivers will drop the comprehensive coverage when the vehicle is paid for, only keeping bodily liability and property damage. If they are at-fault in an accident, their insurance will not cover them, their car, or their passengers. The car insurance company will only cover the other driver’s vehicle, the driver and passengers in that car, and any damage done to buildings, street signs, and other damaged property as a result of the accident. This is the limitation of liability protection.
As mentioned above, bodily injury liability does not cover injuries to you or your passengers in an accident. Injuries to those in your car would normally be covered by the “medical coverage” option offered in your car insurance policy, but medical coverage is optional in most states, and chances are you didn’t buy it. However, some car insurance companies may allow you to use your uninsured/underinsured motorist coverage to cover your injuries and those of your passengers, if you are at-fault for the accident.
Finally, personal injury protection (PIP) insurance, which is required by some states (not by California, for example), will also cover medical expenses and bills, but only for the policyholder (likely the driver). Passengers may also have PIP on their own coverage, and therefore can use their own car insurance to cover their medical expenses.
Other Policy Options – Passenger Bodily Injury Liability Insurance
One of the most important questions a liability insurance policyholder can ask is related to whether or not injured passengers in an auto accident will be covered by the insurance company. There are some cases in which this is possible – namely, passenger bodily injury liability insurance.
This is a type of coverage that functions similarly to medical insurance, but specifically covers passengers in the policyholder’s vehicle in the case of an accident in which the driver is considered to be at-fault. Passenger bodily injury liability insurance is relatively inexpensive when compared to traditional medical coverage added to the existing liability policy.
Deciding On How Much Liability Car Insurance To Buy
Most drivers would prefer to buy full coverage car insurance and be completely covered, so there is no worry whenever an accident occurs. Realistically, auto insurance can be expensive and complete coverage is often abandoned on vehicles that are paid off. You should review your financial situation and consider your monthly or annual budget when determining how much liability car insurance to buy. Most experts recommend purchasing at least $100,000 in protection, and a free car insurance comparison can tell you whether that is affordable for your family.
Some types of liability insurance are only mandatory in parts of the United States, but may be a wise choice for drivers everywhere to protect themselves and their passengers. To find the cheapest liability insurance rates, research different types of coverage and companies, call agents and get their input, and make a final decision only when you think you’ve made the best choice.
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Although auto insurance isn’t like buying life insurance where you are stuck with a carrier for the term of the policy so you better pick a top ranked life insurer, but there’s no point in switching insurers every year and losing your customer loyalty discount during every move. Every dollar you waste on premiums is a dollar you could have saved and invested towards your financial independence.