Types of liability insurance in the US
Liability insurance is a type of insurance providing for the payment of any compensation and legal costs, which under the law can be superimposed on the policyholder as a result of claims due to injuries, which he inflicted other people, or due to the damage caused by their property due to its criminal negligence.
Often policies have determined areas of such coverage, such as personal liability or employer’s liability. General liability insurance is a usual civil liability of legal entities for the harm caused to third parties.
Why is it necessary?
Yes, probably, insurance is inevitable, but the necessary evil. It can be compared with taxes that you need to pay. Otherwise, you can go to jail, and it must be taken as proper. Each American understands that car insurance will ultimately be protected from financial collapse and even prison. Therefore, US citizens are regularly trying to pay insurance premiums. A driver’s liability insurance in the United States is mandatory in almost all states, only some states are the exception.
See Also: Buy car insurance online
In the overwhelming majority of states, it is impossible to buy a car, without having automotive insurance; you just do not sell it. If you did not worry about it in advance and came to buy a car, then you will be offered to conclude an agreement and get an insurance policy in the nearest insurance companies that are usually located around large auto-shops. However, it is better to study the market and choose optimal insurance in advance. You need to know at least the highlights of which the insurance policy is developing. This will help the driver to make liability insurance as much as possible.
A basic type of American automobile insurance
The first two types are the most important and therefore mandatory for everyone almost everywhere in America. This is the liability insurance for the owner of the policy of bodily injuries to another person or persons and the application of material damage as a result of an accident. Each state defines the minimum size of the insurance coverage during accidents.
System of three numbers
Three digits are used in the US, which is tens of thousands of dollars show coverage limits on accidents. For example, the following parameters are taken in California: 15/30/5.
- 15 – a mandatory amount of the policy with minimal liability insurance, measured in thousands;
- 30 – the amount of the policy, if more than one person suffered in the accident;
- 5 – the amount of coating material damage to the victim;
Parameters for liability insurance in New York and in District of Columbia: 25/50/10;
Parameters on Alaska – 50/100/25.
“We always recommend choosing higher levels of coverage, considering the increasingly high cost of machines and medical care,” says the representative of the Institute of Insurance Information Jane Nigl. She believes that the optimal sizes of the coverage today in the US should be 100/300/50.
This explains this as follows: for example, the owner of the insurance policy with a minimal coating caused material damage to another driver in New York, breaking his “Mercedes-500” in the amount of 50 thousand dollars. It is good if at the same time he did not cause damage to the driver. Then the insurance company will pay the reimbursement of expenses for the repair of “Mercedes” laid on the policy of 10 thousand dollars. The remaining 40 thousand the insurance company of the victim will require personally from the culprit through the court with all the ensuing consequences. This proves that liability insurance with such high parameters is much simpler.
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