Liability car insurance is a type of insurance which will protect you from any loss due to any accident. A bad accident is really a bad experience which can cause not only personal injuries of the drivers, passengers, pedestrians but also property damage due to collision. However you may think that you need liability insurance. More importantly, a business which may be small also needs liability insurance. Cheapest general liability insurance small business will surely protect the business and help grow for longer time.
However buying insurance is really tough decision because you have to look at your pocket to make sure you can afford to spend for the insurance. So you should know how much is liability insurance for car in details to save you from spending extra and high cost.
Liability Insurance Coverage & Limit
Liability insurance coverage is highly responsible to pay for the cost of damage and injuries caused by the accident. There are two main types of liability insurance for car.
Bodily Injury Liability Coverage
Bodily injury is a type of liability coverage which is bought to protect financial loss and insurance company pays medical expenses. There are also other costs which may be derived from the accident. These are lost wage for drivers, personal injury of pedestrians and passengers and insurance company also pays the cost of lost wages calculated by the insurance policy. Additionally this accident may cause more legal findings and it claims for lossand in the same way, insurance company is liable to pay for legal defenses.
Property Damage Liability Coverage
An accident is surely responsible to cause more loss like property damage because a car accident may be a reason of others property damage. The insurance company commonly pays for the other vehicle and property repair cost, cost for damaged fences, walls, lampposts, statue and other related costs for accident.
Unlike other insurance policy and premium, liability car insurance is a little bit different because insurance has a rules set by limit. This is also called liability limit. This limit is usually shown in three numbers. For example 100/300/50 has three definition of this number. It is important to note that this numbers are shown in thousands
- $1,00,000 for injuries per person
- $3,00,000 for injuries total per accident
- $50,000 for property damage per accident
These are the figures for every criteria and insurance company is ready to pay the insurance cost in those cases.
Simple Ways To Choose Liability Coverage Limits
Liability limit is the amount that the insurance company pays for a claim caused by any accident. There are three numbers of limit set by general insurance law. So the most important fact to do here is you may put importance on the middle amount in choosing liability coverage limits. There are lowest limit and highest limit of liability insurance for a car. 25/50/25 is the lowest and 250/500/250 is the highest according to the risk factors of the car and accident.
It is a decision on how much you should get limit of liability insurance. Some go for lower limit and some may go for higher limit. If your business is in small type, you should go for lower limit. Premium will be fixed on the basis of how much limit you are taking.
As liability limit has three numbers and middle number shows that the insurance company will pay for the total injury cost of the accident. The standard limit could be 100/250/100. In case you face any accident, the liability insurance expense is going to be $2, 50,000 which will be paid by the insurance company. The case of accident in relation to liability insurance will generate property damage and bodily injury. The cost of bodily injury is much more compared to property damage.
For example, your home, cars, savings and investments has a total value and you will get net worth when you will subtract your debt amount. If this amount is $2, 20,000 for example, the good policy should be 100/250/100 as liability limit higher. Injuries of human body comes with serious type of accident and it tends to cost you higher. Instead property damage surely costs you less.
Average Rate Of Liability Insurance For Car
There are different rules in different state to get liability insurance. But it is important to get appropriate liability amount. It may be worthless and cause of out of pocket when you buy liability insurance if you don’t calculate exact loss amount as before. Even if you don’t have high risk, there is no reason to pay high amount.
But if you buy insurance with lower limit, then it is also a fact for the insurance company to pay lower expense. In this case, you just calculate the amount of limit where insurance company will pay the high amount. When you want to know how much liability insurance for small business is, we can provide you with average rate of the insurance.
It ranges from $242 to $736 as lowest to highest. North Dakota has the lowest rate and you are happy to get this amount and Florida has the highest rate with $736 for a number of reasons. But it does not mean that you are not going to get cheapest car insurance in Florida. Surely there are many insurance company which offer cheapest car insurance in Florida for young drivers also. However the total cost of the liability insurance for bodily injury has been found that it is $13, 462 and the cost of property damage has been found that it is $2,873.
Ways To Lower Liability Insurance For a Car
Though you may find that the liability insurance is a little bit high, that is wrong. There are different ways to get liability insurance at cheaper rate. You follow some steps
Pay Your Entire Premium Upfront
Generally we think that paying for insurance becomes monthly or annually. But now different insurance companies ask for to pay the entire amount for premium upfront. This can offer you for different discounts which lower your premium rate.
Manage Your Risks
The insurance company naturally is not going there where there are more risks. If you make them feel that you are safe from any accident, this can work best for you get lower premium. So you make sure security system advanced, add different security systems for your car and teach the driver on how to be safe on the road and how to drive safely.
Bundle Your Insurance Policies
When you are thinking to avail lower rate, you must go umbrella policy. Umbrella policy is you are getting one more insurance coverage from same companies. The insurance company surely will offer discounts as you are buying multiple insurance from them.
Liability insurance for a car is worth saving you from spending unnecessary cost which may be so high that you can’t think. An accident is not expected and this accident may cause unexpected loss from your pocket. Luckily you can buy liability insurance for your car to make sure you are protected and secured. In case any accident is occurred, the insurance company will be liable to pay the amount of loss caused by the accident.