Liability

Current Rates, News & Information

Even though most auto insurance policies have some level of coverage regarding accidents caused by people other than the owner of the vehicle, ultimately the owner is liable for the expenses associated with an accident.

Car Owners Responsible

Generally, the owner of the vehicle is the person listed on the registration and vehicle's insurance policy. If another person borrows the vehicle and is involved in an accident, the person held accountable for the financial debt incurred is the owner of the car in question.

Liability Rule Exceptions

Of course there are some exceptions to the rule. If a friend borrows a vehicle without the consent of the owner and drives under the influence, the owner will be protected from their lack of judgment. Additionally, if the car is stolen and involved in a collision, damages to others and their property will not be the car owner's responsibility. However, they will probably have to use their collision insurance to pay for the repair to the vehicle.

If you own a car, or are thinking about buying one, then you probably know you have to have car insurance. Only a few states do not require it, but what they do require instead is proof that you can pay for any accident damages you inflict on others out of your own pocket. A few people here and there can afford repairs or hospital bills, but they would bankrupt the vast majority of us, so we need to have car insurance.

Two general components of car insurance are liability insurance and comprehensive insurance. Liability insurance is itself broken down into two parts: personal liability insurance and property liability insurance. Personal liability insurance will pay for medical bills stemming from an accident for which you are at fault. Property liability insurance will cover property repair or losses stemming from an accident for which you are responsible. Comprehensive auto insurance, on the other hand, will protect you should your car be stolen, for example, or damaged at a car show. The auto insurance policies will cost you, of course, but generally speaking, comprehensive car insurance will cost you more.

When you buy auto insurance, you select the level and amount of coverage protection that you want, or can afford. It's a trade-off, really: the higher your monthly premium, the lower your deductible. So, if you get into an accident and it's your fault, and you pay a lot of money every month for a low deductible, you will pay that deductible and then be relieved seeing the insurance company pick up the rest of the tab. Your strategy will have paid off. If you pay a low monthly premium and have a high deductible, you'll really feel the bite when you have to cough up the first $5,000 the other party's repair bill.

Generally speaking, comprehensive auto insurance is more expensive than basic liability insurance because it must cover the full price of your car should it be stolen or declared a total loss due to an act of nature. Policy prices vary from state to state and insurer to insurer, so be sure to check out all your options.

To learn more about comprehensive auto insurance and liability auto insurance, be sure to consult with an insurance expert.

Auto insurance is supposed to be simple: you get into an accident, you file a claim and let your insurer handle it. But in reality, this is not always the case as there are things you should consider before filing an auto insurance claim.

Although state laws mandate certain types of insurance...

Once a car is damaged in an accident, it will truly never be as "good as new," because of the diminished value caused by the wreck. Once a car is involved in a collision, although auto insurance may cover the repairs of the vehicle, the car will never be worth its full value again because repair...

The aftermath of a car accident is oftentimes difficult to deal with. Even if the damage to your health and property are minor, and you are not found at fault for the collision, working with another auto insurance company to settle your claim can be a stressful and time consuming process. The...

Underinsured motorist coverage is a way to protect an insured driver who becomes involved in a collision with another driver who does not have adequate auto insurance coverage . If the driver of the other vehicle is determined to be at fault and their policy limit does not cover your all the...

It is happening right now somewhere in the world. Despite the best of intentions and skills of two drivers, their cars are colliding and an accident has just occurred. In a fantasy world, both drivers would be able to file claims with their insurance companies and get the settlement money needed...

There are many factors contributing to street racing . Teens are the most common violators of street racing laws. Many times this reckless behavior can be discouraged by more education and a better understanding of the consequences.

Street Racing is Illegal Everywhere

Street racing is not legal...

Buying a new car can provide a thrill of a lifetime. Fancy gadgets, fuel efficiency and advanced safety technologies combined with the new car smell can be an intoxicating sensation to relish and enjoy. Before you float away on cloud 9, it is important that you stay grounded and make sure to...

It happens from time to time that we have to let other people, such as friends or family members, drive our cars. Their car may be in the shop, or maybe it's been stolen and they haven't gotten a new car yet. In any case, they might need to borrow your car and you let them. If they get into an...