Buying premiums for a car only a small number of people is aware of the main types of coverage that will cover the losses. So let us learn what liability car insurance is and why so many car owners prefer to buy it. Every American state requires at least minimal liability coverage, so insurance companies try to attract as many customers as possible offering reasonable liability car insurance cost. Why does it happen? Liability car insurance involves two types of coverage:
- Bodily injury one is the first type that is targeted at paying medical bills of the people, who suffered from your car.
- Property damage insurance is aimed at paying all the expenses for repayment or replacement of the auto or any other property damaged by your car.
Most of US states require both types of liability car insurance, so the cost of the premium is quite big. At the same time it is understandable, why it happens. Bodily injury liability covers medical, funeral expenses, loss of income, suffering and pain. According to the insurance policy the liability is divided into per person and per accident. The smallest sum is the maximal payout for person, while the biggest one covers all the injured people. Property damage is usually damage to the other car, but it can involve other property as well, so this type of insurance prevents you from lawsuits regarding damage of the property.
Depending on the limits of the company liability car insurance cost will differ. The Insurance Information Institute recommends bodily injury coverage as 100/300 ($100,000 per person and $300,000 per people) and property damage coverage is estimated at $50,000. But the price of this premium will be much higher, so to lower your liability car insurance cost look for companies that agree on the point 25/50 or even less.
How much should you pay for this type of insurance? The average annual price for liability insurance ranges from $250 up to $736. The most expensive state is Florida, while North Dakota is the least expensive one. The cost of bodily injury liability claim is about $13,500 and $2,873 for the property damage. But all the prices are quite individual and depend on many different factors. Your age, marital status or car model may decrease it or even double sometimes.
If you wish to have a full coverage, you should add collision and comprehensive insurances to the liability car insurance cost. And according to the Insurance Information Institute this sum will be equal $789 per one year.
See this video for more useful information about liability car insurance cost: