Auto Insurance Coverage For Passengers And Other People Involved
Auto Insurance Coverage For Passengers And Other People Involved
People may not like to think about accidents but they do happen. Sensible people feel responsible for any damages they cause and like to compensate for them. Today it is a legal requirement in all states that you have to insure possible liabilities as a result of your fault. These are mainly the damages you caused to other people and their property. You are free not to arrange any coverage for yourself but you would if you are not finding it hard to pay for the premiums. If that is the case, you are advised to look around a bit harder before giving up on essential coverage.
Passengers and other innocent people injured as a result of an accident will be looking for compensation. You buy car insurance so that these people are paid when you are at fault. The accumulative costs can be substantial that it would not be wise to start driving without liability coverage. Besides, you will be breaking the law as liability insurance is mandatory in all states. Actually, many policyholders buy a lot more than coverage limits enforced by states. Normally, as you increase the cover, the rates for additional amounts drop really fast. Consequently, you can increase your coverage to a million dollar level or have it unlimited without paying a fortune.
Passengers in your car, other cars involved and injured pedestrians can claim all their medical expenses until they are fully recovered. This could reach a considerable amount and some people may need care until the rest of their lives because of serious disability after an accident. If you caused the accident your insurer will have to pay for these damages. When your insurance cover is exhausted they can come to you for the unpaid portion of their claims. Make no mistake that you can lose large sums of money to pay for the injured parties.
Furthermore, they can claim for the wages they lost because they could not work. This is a straightforward provision and perfectly understandable. People should always think the worst when they are arranging insurance policies. Today, many people earn large sums that there is a chance you seriously injure someone who is earning over a million dollars annually. Thinking from your own point of view, you will have to increase the coverage substantially if you can pay for it. The more wealth and property you have the more you stand to lose.
Finally passengers and pedestrians involved can claim for loss of personal property. Other drivers and property owners will also be asking for their losses. Understandably, people can have computers and other gadgets worth thousands of dollars. In rare cases, people can claim for expensive jewellery or other items which they have to prove have been lost in the accident.
Probably it is clear to everyone that liability insurance does not cover the policyholder. Furthermore, many auto insurance companies have the family member exclusion clause in these policies. Essentially if you take out your friends in your car and have an accident they can make personal injury claims against you. But when there is this exclusion, your spouse, children and any related person living with you in the same house will not be covered for their personal injuries when you caused the accident. This is a very important exclusion clause to watch out in liability policies. Some companies offer policies without this clause and you may have to find them if you are not buying full car insurance coverage. Otherwise, you will have to make sure that you and your family are covered for injuries in other sections of the policy like personal injury protection section.
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