Cheap Liability Car Insurance

Fran Majidi
December 3, 2020

If you ever cause a car crash, liability insurance pays for other people’s injuries and property damage up to your liability limit. How much is your liability limit? It depends on the state where you live and how much additional liability insurance you choose to purchase.

With liability insurance you’ll get coverage for bodily injury liability coverage per person, bodily injury liability coverage per accident and property damage liability coverage. For example, in California, the minimum bodily injury liability coverage is $15,000 per person and $30,000 per accident and the minimum property damage liability is $5,000 per accident. These are the minimum liability standards for the state of California only though. Most states have their own minimum liability requirements for its drivers. Some are much higher than others. And some, such as California, have limits that are quite low. Whatever the liability standard in your state, you’ll need to meet it, it’s the state law. You can save money by comparison shopping, however!

A Higher Level of Protection

You’ll also want to consider additional insurance coverage and protection for you and your family beyond the minimum liability requirements in your state. The minimum liability standards are quite low and would not offer adequate protection in the case of a serious car accident. And if you are at fault in the accident you’ll be left paying for the remainder of the accident damages out of your own pocket. This puts your family at financial risk. That is why most experts recommend at least $100,000 bodily injury liability coverage per person and $300,000 bodily injury liability coverage per accident. The Insurance Information Institute recommends both of these amounts as well as $100,000 property damage liability coverage.

Shopping for Liability Insurance

Looking for a deal on your liability insurance? These insurance companies are known for their low rates. And they may give you the liability coverage you want at a great price. According to U.S. News, the nine cheapest car insurance companies in the country are USAA, Geico, State Farm, Travelers, Progressive, American Family, Farmers, Nationwide and Allstate.

To get the absolute best price on car insurance, you’ll want to get insurance quotes from several different companies. SmartFinancial makes it easy to compare auto insurance rates from dozens of companies near you in no time. SmartFinancial has access to more than 200 insurance companies so you are bound to find the coverage and price that you are looking for.

An Umbrella Policy

Not sure your auto liability insurance is enough to protect your family in the case of a serious accident? You may want to consider purchasing an umbrella policy. An umbrella policy is an affordable way to get a large amount of liability coverage. Umbrella insurance is a type of personal liability insurance that covers claims for homeowners and auto insurance policies and watercraft if you should have a boat.

An umbrella policy covers not just the policyholder but other family members as well. How much an umbrella insurance policy costs depends on how much coverage you buy, the number of people in your household and the state where you live. The more homes and cars that you own the more an umbrella policy will cost.

According to the Insurance Information Institute, a $1 million umbrella policy costs between $150 and $300 per year. So consider an umbrella policy if you are concerned about exceeding the liability coverage on your auto insurance. It may give you the additional liability coverage you are looking for at an affordable price.

Other State-Required Auto Insurance Coverages

In addition to liability coverage, your state may require you purchase uninsured motorist coverage and underinsured motorist coverage. The uninsured motorist coverage helps pay for damages caused by a driver who doesn’t have insurance. And underinsured motorist coverage protects you in the event of an accident where the other party is at fault and doesn’t have enough insurance.

And some states will require drivers to buy Personal Injury Protection (PIP). Also known as no-fault insurance, this coverage pays for the cost of lost wages and medical bills up to the policy limit. PIP coverage will cover these expenses regardless of who is responsible for the accident. Between liability, uninsured motorist coverage and PIP coverage, some states require quite a bit of insurance for their drivers. Make sure you meet the minimum auto insurance requirements in your state. It is the state law.

Lender-Required Auto Insurance Coverages

Financing your car? Your lender will require you to carry collision coverage and comprehensive coverage for your car.

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Collision insurance is coverage that helps to repair or replace your car if it is damaged in an accident with another car or object such as a fence or a tree. Comprehensive auto insurance covers events that aren’t covered by collision coverage. These events include fire, theft, vandalism and damages from weather such as a windstorm, a hailstorm, a tornado and a hurricane.

Both collision and comprehensive insurance coverage come with deductibles. A deductible is the amount you need to pay before your auto insurance company begins to pay for damages on your car or losses. Choosing a high deductible is one way to lower your auto insurance premium. So if you can manage a deductible of $1,000 or higher, it will help to lower your insurance premium.

Easy Ways to Save on Auto Insurance

With auto insurance, how you pay can save you money. Here are some quick ways to save money on your policy. Rather than signing up for monthly payments, pay the entire annual amount or six-months amount. Your premium is lower when you pay just once or twice a year. Try bundling. Bundle your car insurance policy with another policy such as a homeowners policy and you’ll save money on your auto insurance.

How you drive your car can help you to save money on your auto insurance, too. Be a safe and responsible driver. Follow the rules of the road and you’ll earn a good driver discount, which will help to lower your auto insurance premium. Be a low-mileage driver. If you are a heavy commuter you will pay more for your car insurance. If you are a low-mileage driver you will pay less for your car insurance. So drive less and pay less on your car insurance. Most importantly, compare rates by entering your zip code below.

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