Basic Limits of Liability Insurance

The most basic type of car insurance that you can get is liability insurance. In most states you are required to have at least liability insurance to operating any vehicle on the road. This type of insurance doesn?t cover your vehicle only the damage done to other property and people.

The minimal amount of coverage that is offered through liability insurance is known as the basic limits of liability. While some companies have different minimums the lowest coverage that you can receive is $25,000 worth of property damage and $50,000 worth of bodily injury.

There is another type of car insurance that you can have that will cover your car and the other vehicles as well. While these plans are more expensive they are preferable if you have an expensive car or if you want to have limits that will protect you in case a car accident causes serious bodily harm to the other person.

In most cases basic liability will cover an accident and injuries. However if you are in a more serious crash then you will have to pay the difference that the insurance doesn?t cover. So if you only have $50,000 in coverage and you do $100,000 in property damage then you will most likely be sued for $50,000.

As you may expect the price for your premium will go up with the higher coverage plans. However there are some other factors that can increase the price of your plans as well. If you?re a young driver, have a bad driving record, or a sports car you are likely to pay higher premiums. Likewise if you?re the parent of someone who has one of these three items and he or she is on your plan you can expect to pay higher rates as well. You should also remember that the medical coverage is always the larger number and is usually double the amount of the property damage coverage due to medical bills being so expensive.

Some states don?t require drivers to have insurance at all. However it?s definitely a good idea to have at least the basic coverage of liability to protect yourself from being sued. This is because even a small accident from driving without insurance can put you in thousands of dollars in debt. In some situations you will want to have higher limits and a lower deductable. If you have an expensive car then you will most likely want to get collision and comprehensive insurance. This will protect your car in the event of an accident. The comprehensive insurance will protect your car in the event of vandalism or weather conditions that can damage your vehicle such as golf ball sized hail.

Finding the right type of insurance for a vehicle can be a difficult and long task however it?s a very important one. If you?re unsure about what type of insurance would be best for you then you should consult one or several insurance agents and get their recommendations.

Graham McKenzie is the content syndication coordinator for Carinsurancesa.co.za. South Arica?s leading Car Insurance portal.