Driving comes with responsibilities, and one of the most important is preparing for the unexpected. Auto liability insurance is vital in protecting you financially if you’re at fault in an accident. Without it, you might have to pay out-of-pocket for repairs, medical bills or legal fees.
What Does Auto Liability Insurance Cover?
If you’re involved in an accident and found at fault, your auto liability insurance policy may cover the following:
- Bodily injury liability may pay for medical treatments, lost wages and legal fees if the injured party sues you.
- Property damage liability may pay for repairs or replacement of another person’s car or property (e.g., a fence or mailbox).
Each policy has coverage limits, which are the maximum amounts your insurer will pay. You’re responsible for any costs exceeding those limits. As such, choosing a policy with adequate coverage is essential.
The following are some scenarios where auto liability insurance can be invaluable:
- You accidentally rear-end another vehicle at a red light, damaging their bumper and causing the driver to need medical attention.
- While parking, you scrape another car’s side, leaving visible scratches.
- You run a stop sign and collide with another vehicle, resulting in injuries to the other driver and passengers.
- While turning, you misjudge the angle and hit a homeowner’s fence.
- In a multi-car accident caused by you, passengers in the other vehicles suffer injuries.
How Much for Coverage?
Auto liability insurance rates vary among insurance companies. However, most insurers base your premium on factors such as the following:
- Coverage limits you select
Drivers with clean records typically pay less, while those with traffic violations or accidents may face higher premiums. On average, liability-only policies are more affordable than comprehensive plans, but rates differ significantly by state.
Get Affordable Coverage
American Insurance & Investment Corporation offers low-cost auto liability insurance tailored to your needs. Contact us today.
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