Auto Liability coverage

Yes, it is worth the cost!

   We all know it is illegal to drive without Liability insurance. (At least I hope you know) But why is it so important that the states require it? Is the other coverage important, even though it isn't required by law?
Does it really protect me? Yes. Yes it does. But there are many levels of protection and this is where you have some decisions to make.

 Liability Coverage

This pays for any damage you inflict, on other drivers in an accident. I never liked that word "inflict"? It insinuates you found the guy, sped up to 100 mph and rammed his car. Let me put it in a more fair sounding way. If you are found to be at fault, Liability will pay for the damage done to the other drivers car and body, or bodies if he has passengers. There is a state minimum, but other than that, you will get to pick the amount. The choices usually fall to $30/60, $50/100, $100/300, $250/$500 and so forth. These are in the thousands (so $30/60 is actually $30,000/60,000)

Bodily Injury Liability 

This pays for the cost of any injuries, including death, of a person as a result of an accident you cause. It would cover medical bills, loss of income, pain and suffering. If you end up in a lawsuit, it is important you have enough liability coverage to handle any monetary judgement that is handed down. If you do not have enough insurance coverage, you are still responsible for the remaining damages amount. Bodily Injury is only for the "victims" of the accident. It will not cover your own medical bills. Again you can choose the amount of coverage you wish to have. So think of the worst case scenario and pick the amount of coverage you want.

Property Damage Liability

This pays for the damage you and your vehicle do to another person's property. It usually used for the other car in the accident, but it also covers fencing, plants, trees and houses. It is not required in most states, but it is worth the cost. If you hit a Mercedes or someone's home, can you cover the cost of repairing or replacing?
Again you can choose the amount of coverage you wish to have. So think of the worst case scenario (like hitting that Mercedes) and pick the amount of coverage you want.

Coverages Other than Liability

Liability is a very important coverage, but it is not the only one.
Uninsured/Under-insured Coverage: This will cover the costs associated if you are hit by someone with no insurance or not enough insurance. This is not required by law, but it is a coverage I will always talk to my customers about. I have a friend who was hit by a drunk driver one night. The other driver had no insurance, nor was he a US citizen so there was no way they could go after him for damages. My friend had $50,000 in hospital bills (2 surgeries) and missed 10 weeks of work. If he didn't have Uninsured Motorist coverage, he would have had to cover those costs himself. That's a scary thought!
Collision Coverage: This covers your car if you hit anything. This is one that many people opt to reject, especially if they have older cars. It can be expensive and you will have a deductible. You need to decide if it will save you enough money in premium to cover the cost of repairs if you are in an at fault accident. Also keep in mind, if you are paying off your car, or if you have a lease, the company you are financing through will most likely require this coverage.
Comprehensive Coverage: This is also known as "other than collision" coverage. It covers your car if something hits it. This could be a tree falling on it, flooding, theft, a deer hit you. Yes, you did not hit the deer, it jumped in front of your car.
None of these coverages are mandatory, but the expense of the coverage can be far outweighed by the expense of the repairs. We call it "self insuring" and most people cannot afford to self insure. But other than the Liability, you get to decide if you want a coverage or not.
There are other bells and whistles coverage like rental, towing, stereos and rims. These coverages are meant to make your life a little easier, not as much protect you. It is always good to have coverage, but it may not be necessary to have every piece of coverage. Insurance is in place to protect you, but you have to make the decision as to how much is worth the cost.

Any questions? Please give us a call at Brockman Premier Insurance
local: 214-592-0859
toll free: 1-877-987-8683