Auto liability coverage offers compensation for the damage cost if you are at fault in the accident. It does not offer coverage for your injury and car damage costs. Most states require the residents to get liability insurance. It has three important components including bodily injury per person coverage, bodily injury per accident coverage and property damage per accident coverage. The requirements of the three coverage components are often mentioned together, for example, $30,000/$50,000/$30,000 or 30/50/30. The first two numbers refer to the bodily injury coverage while the third number refers to the property damage coverage.
Bodily injury coverage pays for the injury costs of the third parties in the accident. Without auto liability insurance, you will be responsible for paying the costs because you are at fault. The costs that are covered in bodily injury coverage include burial, medical, emergency aid, and legal costs. Property damage coverage pays for the damages done to the properties. The costs covered by property damage insurance include damages to buildings, objects within the vehicle and vehicle.
Many states provide alternatives for people that don’t want to purchase auto insurance. If you decide not to buy auto insurance, you must show financial responsibility competence. Individuals who own more than 25 cars can get a self insurance identity card from the Department of Revenue. The 25 vehicles must be registered under your name. If you don’t own 25 vehicles, you can obtain the surety bond and other securities from the Department of Revenue. If you have a real estate, you can get a real estate bond. If you fail to show financial responsibility competence, some points will be deducted from your driving record. If you still neglect to show driver responsibility, the court will send an order to you and suspend the driver license. Depending on the state, you will have to pay for a fine and submit financial responsibility proof.
Every driver must bring their insurance proof when driving on the highway. When the traffic police stops your vehicle, you must show the proof of insurance. The proof of insurance can be an identity card that is issued by the insurance company.
You should not underestimate the costs involved in an accident. If you encounter a serious accident, you could be liable for hundreds and thousands of auto insurance. If you purchase liability insurance with low limit, you can become bankrupt due to the large expenses. You might have to liquidate the property to pay for the damage cost. With liability insurance, you will be free from these financial worries.
During an accident, make sure you don’t drive away your vehicle and leave the scene. If you leave the accident scene, you are committing a crime. You must quickly move the vehicle to a different place if it is posing an obstacle to other vehicles that are traveling on the highway. If anyone is hurt, you must help him. You should ask for the license plate number, policy number and driver license number from the third parties. In this way, you can file an auto liability claim with the insurance company.