How Much Auto Liability Insurance car liability insurance Do You Need?

To compensate the victims in the event of an accident, and to protect your assets if the victims file a lawsuit, liability insurance can be set at a cap per person and per accident. To denote the proportion of the coverage amount devoted to personal injury and property damage, a fraction is usually used, like 50/100. The fraction represents thousands of dollars split between the two coverages. According to the Insurance Information Institute, $100,000 coverage for bodily injury per person and $300,000 per accident is recommended. You may purchase a larger amount of liability insurance if your net worth is over $300,000.

No Fault States
There are currently several states that are “no fault” states. In these states, your auto insurance policy covers damages to your vehicle and injuries sustained in your vehicle regardless of fault. The same is true for the other driver. His auto insurance policy would cover him. This differs from the standard liability insurance in which you are responsible for damages that you cause.

Setting Your Deductible
If you feel that the chances of ever filing a claim on your automobile insurance are unlikely, you can probably set your deductible higher ($1000 or higher). This will yield a lower premium. If you feel that your situation may make your vehicle susceptible to vandalism or other minor damage, setting your deductible lower ($500 is usually the lower limit of most policies), may serve your needs better. Expect your premium to be higher. None of us cherish the idea of spending money on something that we will probably never use. To have to deal with the consequences of an accident without insurance should remove all regrets.