Consumers who are interested in buying liability insurance for autos have a number of options available. The baseline level of coverage that drivers must have in place is usually established by state law. Insurance companies will offer a quote to a potential buyer for at least this level of protection, and customers always have the option of buying a policy with a higher limit than the state minimum if they wish.
Third party liability coverage (bodily injury and property damage) is required in most parts of the United States. This type of insurance pays for injuries and economic loss sustained by the occupants of the other vehicle following an accident. It also pays funeral costs if the accident resulted in one or more fatalities.
Property damage liability coverage is used to pay for repairs to the other driver’s vehicle. It also covers the cost to repair or replace public property damaged in the accident, such as mail boxes, sign posts, side walks, guard rails and fences.
Consumers need to consider the level of liability insurance coverage they have in place carefully. If the level of damages sustained in the accident is more than the policy limit, the at-fault driver is responsible for paying the difference personally. While buying a policy with a higher limit may be more expensive, customers can look for ways to save on their coverage, such as asking about discounts and increasing the policy deductible.