What Is Liability Auto Insurance Coverage?
Reader’s Question:
Hi, I’m from Phoenix, Arizona and I am a new driver and quite new to auto-insurance. Could someone explain to me what Liability coverage is?
Pam
Phoenix, AZ
Hi, Pamela, right? Let’s get the facts straight. Liability coverage is that piece of automobile insurance that is required by most states now. Most states– that means unless you’re a resident of some states like, from memory — Virginia, New Hampshire and Wisconsin, liability coverage will be a fact of life for you. Surely you won’t move states just to skip it, kidding. So how does liability coverage work? Liability coverage works to protect the car owner from accidents that are his or her fault. One article I read about it cleverly points it out that a driver’s good luck or clean slate won’t last forever.
Here are some basics for you to understand the concept. I’ll leave out the clutter. In Arizona, you’re required to have Bodily Injury Liability Coverage and Property Liability Coverage. Bodily injury coverage serves to pay for damages like medical bills, even funerals. Property Liability coverage, this one saves you from the pain of paying for damage to property caused by you. The state requires you go to have a minimum coverage of 15/30/10. What the heck do these numbers mean to you? Simply put, the first number represents $15,000 of bodily injury for one person with a cap of $30,000 (the second number) total for all the people injured. The last number just means you’re covered up to about $10,000 of property damage. If damages exceed the numbers…that will be a different story already.
Car Repair Cost More Than My Insurance Company Estimate – Help!
Reader’s Question:
My wife just had her first accident, thank God nobody is hurt. At first I thought it was just a minor accident and the cost of damage for the repair is not that much. But now, I am thinking the other way around, after the repair shop in Chandler, Arizona send us the quote it was such a price and the insurance adjuster provided lesser amount telling us that this is only the collision coverage can cover for. Whew! Any idea, what else can we do?
Rob
Chandler, AZ
Let me start first with your Collision auto insurance coverage. It is a part of your total comprehensive auto insurance package. Now in your policy, if you can review it. It is agreed in there that the insurance company will carry all the damages and repairs but this is limited to the vehicle. There are times that the value of the vehicle is less than the cost of repair to the vehicle. Collision auto insurance covers the cost of damage and repairs but it doesn’t mean guarantee for replacement or replacement value.
The insurance adjuster only received the description of the damage of your car, he then seek for an estimate for repair of the said damage. Only that, it appears the estimates he had is lesser than the cost of repairs the shop provided to you. I think the amount that the insurance adjuster offered was correct.
The collision auto insurance coverage provided options for you. First, you can accept the offered amount go for the repair and shoulder the excess amount. Second, you can negotiate with your insurance adjuster, but if you are still unhappy with the outcome you can go to the third option. Third, file your complaint at the state insurance agency in Arizona. This agency will review your collision auto coverage and evaluate it with your insurance provider. Try to research online too for auto insurance options in your area. Insurance sites like this one will be able to route you to auto insurance rates comparison in your area.
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