venerdì 29 gennaio 2010

Automobile Liability Insurance For Your Financial Protection

By Adriana Noton

Drivers of automobiles are required by state law to have automobile liability insurance in every state of the United States. The purpose of this coverage is to cover the cost of damage caused to other vehicles in an auto accident when you are at fault. Every state has its own requirements for the amount of Car Liability Insurance that is needed. Some of the state have a low amount of insurance requirement that is required. Other states have adjusted the minimum to account for inflation as it applies to medical bills or property damage.

In addition to being required by your state's laws, liability insurance also protects other properties that you may own. When damage is done or injuries are caused in an accident, if your insurance coverage is found lacking, you can be held personally responsible and your personal property can have liens placed against it. These liens can prevent your from getting a loan or must be satisfied before the property can be sold.

Many times you will hear liability referred to using three numbers such as 25/50/25. The first 25 refers to the amount of money the policy would pay for medical expenses and other personal injury expenses ($25,000) for any one person that was hurt in an accident. The 50 is the maximum amount payable to all persons hurt in the accident ($50,000) and the second 25 is what the policy would pay for property damage ($25,000).

The requirement in most states is too low to give adequate protection to your personal and real property. Often you can purchase much more adequate insurance at a very small difference in price. The insurance agent should be able to give you a very good idea about the policy that would best suit your needs.

Your state DMV will be able to tell you the minimum amount of liability insurance that is required for your vehicle. In addition, they can tell you about penalties for allowing insurance to lapse. In an effort to cut down on the number of uninsured motorists, many states have enacted laws that require the insurance company to notify the DMV if your policy lapses for even one day. While the effort to cut back on uninsured motorists is appreciated, you can get into a sticky situation if you forget to pay your policy premium.

The penalty for allowing the insurance to lapse even one day is cancellation of the registration of your vehicle or of your driver's license. You will have to show proof of insurance and pay an administrative fee or fine to have them reinstated. The penalties grow progressively higher with each time the insurance lapses and some states will confiscate your vehicle on the third offense for six months. You are responsible to pay for the state to store your car.

If you need to purchase liability insurance, request quotes by using the net. Many companies offer instant quotes for the insurance that you need. Compare the quotes to find the coverage needed for your vehicles and at the best possible price to pay for insurance.

Learning to drive defensively is one of the best ways to lower the price you pay for liability insurance. Defensive driving will keep you from having accidents and will also keep you from having traffic tickets. If you do not already drive defensively, then you should consider taking a defensive driving class to learn some new techniques.

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