What is the definition of a liability insurance policy?
Liability coverages include: bodily injury liability: pays damages for bodily injury or death resulting from an accident for which you are at fault property damage liability: pays for damage to someone else's property resulting from an accident for which you are at fault for serious accidents, you want enough insurance to cover a judgment against you in a lawsuit without jeopardizing your personal assets. Therefore, it's a good idea to have the same level of bodily injury coverage for all your cars. You may also want to consider an umbrella policy which provides additional coverage for more serious accidents and lawsuits. Auto insurance is a contract between you and the insurance company that protects you against financial loss in the event of an accident or theft. In exchange for your paying a premium, the insurance company agrees to pay your losses as outlined in your policy . Auto insurance provides coverage for: property – such as damage to or theft of your car liability – your legal responsibility to others for bodily injury or property damage medical – the cost of treating injuries, rehabilitation and sometimes lost wages and funeral expenses basic personal auto insurance is mandated by most u. S. States, and laws vary.
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If you're injured in an accident caused by someone who doesn't have enough liability insurance or any at all, uninsured & underinsured motorist coverage helps pay for medical expenses, pain and suffering, and lost wages from the owner or driver of an uninsured or underinsured motor vehicle. Uninsured & underinsured motor vehicle coverage. To understand your purchase of auto insurance , you should be familiar with a few terms. Liability insurance covers bodily injury to other people and damage to the property of others caused by your negligence or the negligence of someone driving your car with your permission. A minimum of $25,000 per person and $50,000 per accident for bodily injury liability and $25,000 per accident for property damage liability, is required by law, but drivers are strongly urged to consider higher limits. Uninsured/underinsured motorist coverage covers bodily injury to you, your relatives who live with you and your passengers if they are injured in an accident caused by an uninsured motorist, a motorist whose bodily injury liability limits are less than your uninsured/underinsured motorist limits or a hit-and-run driver. Personal Injury Protection (PIP) Auto insurance requirements vary from state to state. If you're
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Each state must implement either a tort system or a no-fault system. South carolina implements a tort system. The three basic coverages sold under the tort system are bodily injury liability insurance, property damage liability insurance, and uninsured motorists coverage. This covers you if you are in an accident with a driver who does not have any liability insurance, or is underinsured. The insurance company must offer you this coverage. If you choose not to buy it, you must sign a form, called a waiver. The form says you were offered the coverage and turned it down. Uninsured motorist bodily injury (umbi): this pays for injuries to you and any person in your car when there is an accident with an uninsured driver who is at fault. The limits are the same as your liability coverage limits. Underinsured motorist (uim):this covers limited costs for bodily injury if you are in an accident with a driver who does not have enough insurance to pay for damage. Another important feature of your auto insurance policy is bodily injury protection for you, all family members who reside in your household, and occupants of your car, in the
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