What is Auto Liability Insurance and What Does it Cover?

 

If you are looking for car insurance in Lancaster SC, it is important to understand how parts of an insurance policy works. Auto liability insurance protects you and your assets from a costly claim and lawsuit. Let’s look at two areas:

Bodily Injury

The bodily injury portion of your auto liability insurance coverage will pay for the medical expenses for injuries or death of someone that was caused by your negligent actions.  This coverage includes but is not limited to, medical cost for ambulance, helicopter flight, hospital, surgery and medication. It will also cover loss of income, legal fees, pain and suffering and funeral expenses.

Property Damage

The property damage portion of your auto liability insurance coverage will pay for the damage that you do to someone’s personal property. This includes, their vehicle and their personal belongings in the vehicle. This includes a travel trailer, ATV, personal trailer, as well as, the contents that may be attached to the vehicle. Your coverage will also pay for damage to a building or other property in an accident.

Here’s an example. The South Carolina state minimum coverage amounts for auto liability insurance are 25/50/25. Your policy will pay up to $25,000 for bodily injury or death per person. It has a maximum bodily injury amount of $50,000 for all the occupants of the vehicle that you hit. The other $25,000 is the maximum it will pay for the damage that you have done to the other persons property.

Next, people just assume they need to buy their coverage based solely on what’s cheapest or the state minimum requirements. When it comes to protecting you and your family’s future, remember that cheaper is not always better. If you don’t have sufficient auto liability insurance coverage, the judge may ask how you plan on paying for the rest of the judgement against you.

Finally, when you have auto liability insurance, the coverage limits you choose can keep you from losing everything you’ve earned. It is very important for you to look at your assets and then determine what amount of coverage you will need for your protection.

Read our article How Your Auto Insurance Can Cause You to Lose Your Home.

 

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