How to Buy Auto Insurance – Part 1: Auto Liability

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What is Auto Liability Insurance?

When you are negligent in a car accident due to failure to yield or failure to use due care, you are “liable” for damages. Auto Liability coverage pays your “Liability” to the other party.

In other words, when you collide with another car, and its your fault, Auto Liability will pay for the damages you cause the other driver.

There are two kinds of damages you can be liable for- you can cause them Bodily Injury and you can cause damage to their property. Consequently there are two kinds of Auto Liability, Bodily Injury Liability and Property Damage Liability.

Auto Liability is usually described in split limits. For instance, 100,000/300,000/50,000 or 100/300/50 are typical limits.

The first number refers to Bodily Injury to each person, the second number refers to Bodily Injury for one Accident and the 3rd number refers to Property Damage Liability.

In other words your policy will pay $100,000 for each person injured in an accident, but no more than $300,000 for all people injured in one accident and $50,000 for any property damage you do.

Are you required to carry Auto Liability in Florida?

Florida requires at least $10,000 of Property Damage Liability on every policy, so that each driver has $10,000 to pay for damage they cause to the other drivers car or other property. Believe it or not, Florida does not require a driver to carry Bodily Injury Liability. That’s right- you can have a policy that does not cover the other parties injuries and still be street-legal to drive in Florida. Cronin Insurance highly recommends purchasing Bodily Injury liability on ALL POLICIES. There is nothing scarier than receiving an Attorney’s letter notifying that you are being sued when you don’t have the Insurance Company (and it’s legal team) to help you.

How much Auto Liability should you buy?

The best strategy for Auto Liability is to buy as much as you can afford. The idea is to have enough coverage in your policy so the other party is satisfied and does not need to collect from your personal assets.
Although the majority of at-fault accidents can be settled for $10,000 or less, that still leaves thousands that will require higher limits. We recommend at least 100/300/50 and higher limits if you have more assets to protect. Medical bills are rising every year and so are the prices on the cars you may collide into.

In the next video, we’ll dive a little deeper into Bodily Injury Liability.

Auto Liability Insurance, buy as much as you can afford of this very important coverage and, as always, if you have any questions, contact the independent agents at Cronin Insurance.

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