What is the definition of a liability insurance policy?
by Admin
Posted on 26-11-2022 07:04 AM
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.
What are the different types of insurance coverages you can get for your car?
The basic personal auto insurance mandated by most u. S. States provides some financial protection if you or another driver using your car causes an accident that damages someone else’s car or property, injures someone or both.
But to make the best decisions about purchasing other types of auto insurance coverage you might need, you’ll want to understand what’s covered, what’s not covered and what’s optional. In addition to understanding types of coverage, you’ll also want to consider coverage amounts. Why? because state-required minimums may not cover the costs of a serious accident, so it’s worth considering purchasing higher levels of coverage.
By valerie hawkins chances are, if you own a car, and you’re a law-abiding citizen, you have auto insurance. And although auto insurance is one of the most common types of insurance out there – there are a lot of icky, confusing terms that go along with it. But don’t let insurance mumbo-jumbo get you overwhelmed. My goal is to explain the three most common types of auto insurance coverages without putting you to sleep. Here goes nothin’….
Auto Insurance Coverage Explained
In order to register and drive your vehicle in massachusetts, you are required to at least purchase the auto coverages and limits shown in the table above. Your auto insurance policy must list all licensed drivers living in your household who are related to you by blood, marriage, or adoption, including drivers already covered by their own insurance policies. You should also list any person who occasionally drives your car. While the policy only requires you to list "customary" operators, insurers often interpret this term broadly, and some require that you list anyone who may use your vehicle. Typically, drivers who have their own auto insurance policies can be listed on your policy as "deferred operators” at no additional charge.
Auto insurance covers a variety of mishaps that can occur on or off the road. Although coverages may vary by state, these are the standard coverages on most auto insurance policies: explore more auto insurance coverage options with progressive.
When it comes to your auto coverage you will run into a lot of terms that describe the various parts of a policy. Knowing what they mean is vital to selecting the right coverage for your needs. Third-party liability. This refers to the coverage provided by the insurance company to pay out liability claims against you. Liability, as the word implies, pays for damages for which you are found liable. This includes property damage and injuries caused by your actions. All drivers are required by law to carry a minimum amount of $200,000 for third-party liability. Collision and comprehensive.