By: Stuart Simpson
I wanted to break down the main parts of car insurance for you to understand what each are and why you have to pay so much for each part. The three main parts are liability, collision, and comprehension. This article is about liability car insurance.
Liability insurance covers medical bills if you are in an accident. Some insurance has this divided into 2 groups – bodily injury and property damage. Most have it grouped into one coverage called liability.
Liability insurance covers medical bills and legal responsibility for you if you are involved or cause an accident. If you are sued, and believe me I know, the “injured” party will sue for everything you’ve got and hopefully settle for whatever your limits of liability are.
I rear-ended a hooptie old pickup truck. Not bad, mind you. I checked on the lady and asked if she was all right. After she found her purse, she said oh, my neck, repeatedly until the ambulance arrived. The only damage to her no tail light truck was the home made bumper was bent. She was paid $2800 for a $500 truck and then she sued me for $78,000.
I only had coverage for up to $25,000 and she took the full amount and dropped the case, but she could’ve sued for more. I would’ve had to sold everything I had and then some to pay her off. So if you haven’t already, increase your limits of liability. I didn’t know I should increase my limits as I relied on my insurance agent to take care of me. He didn’t care. You know how much more it cost to raise my limits? $8. whoopee. I had to make him increase it.
Remember, you don’t always hit hooptie trucks in an accident. You could crash into a brand new Mercedes and that would easily eat all your insurance. Even a brand new “regular” vehicle can cost $25,000. I recommend you raise your limits to protect your home, family, savings, retirement, and any financial future you hope to have.
In summary, liability is required in most states. It’s the law. If you get a ticket, you can rest assured that the ticket for no liability insurance is higher than what you would’ve paid for the insurance in the first place.
