The Facts About Liability Insurance
The roads in New York are getting more dangerous year by year. The number of accidents has risen over time. Auto insurance is a good way to make sure any injuries or repairs are paid for, but there are often other persons to consider when an accident occurs. Those other persons also incur damages and the costs associated with them, and they must be paid for as well. This is where liability insurance comes to the rescue.
Liability insurance will protect the policy holder from any costs they have to pay for physical injury or property damage caused to another person. So if there is an accident that results in someone else being hurt or their property being damaged, liability insurance will pay that other person on behalf of the policy holder. Without liability insurance, there is the possibility of being sued, which will cost much more than the actual damage caused, after legal fees, rehabilitation charges, and other such costs.
Liability Insurance Can Save Money
The cost of liability insurance can actually be less than that of full coverage. Full coverage requires that all vehicles and persons involved in an accident are entitled to some form of payment. Liability insurance only covers another driver involved in an accident.
The Two Kinds of Liability Insurance
There are two distinct forms that liability insurance takes:
- Physical injury liability that will pay for another person's injuries or protect the policy holder in the event of someone being killed in an accident.
- Property liability that will pay for damages to someone else's belongings, like their fence or mailbox.
Just vehicle insurance does not provide enough. Liability insurance is needed for full coverage.
United States Regulations for Liability Insurance
Most states in the United States require liability insurance of some kind, though the exact amount of coverage can vary from state to state. Virginians have to pay $500 a year for each vehicle, if they do not have liability insurance of some kind. In North Carolina , a driver cannot even be issued a license without liability insurance, but in New Hampshire , it isn't legally necessary at all. It is common for states to assign a minimum liability requirement, like $20,000 for injuries, $10,000 for property damage, and $40,000 to comprehensively cover all injuries.
Liability for an accident can cost a catastrophic amount of money, which is why auto insurance just isn't enough. Liability insurance will protect a driver from whatever may happen out there, financially, so an accident doesn't have to be a monetary disaster as well.