“What
If…” A Lawyer’s Logic
PROTECT
YOURSELF!
Auto
Insurance Coverage: What is Required vs. What You Need
Many
people don’t fully understand what they pay for when buying auto
insurance. Some people think about the
vehicle they drive, its value, and the cost of premiums when considering
insurance purchases. Some even think if
they own an older vehicle, there is no need to have “full coverage.” WRONG!
LEGAL
REQUIREMENTS
PROTECTION FOR OTHERS
LIABILTITY
INSURANCE – At-Fault Coverage REQUIRED BY LAW in Idaho
This is the most basic component of auto
insurance. Liability coverage means that
your insurance company will cover damage that you cause to another
driver’s vehicle, as well as their medical bills and lost wages due to an
accident or damage to property. This
coverage is often called “Bodily Injury” insurance on some policies.
In Idaho, “liability coverage” is defined
as the amount your policy would pay for injured people or damaged property due
to your negligence. Idaho Code §49-117
(18) states:
"Proof
of financial responsibility" means proof of ability to respond in damages
for liability, on account of accidents occurring subsequent to the effective
date of the proof, arising out of the ownership, maintenance or use of a motor
vehicle, in the amount of twenty-five thousand dollars ($25,000) because of
bodily injury to or death of one (1) person in any one (1) accident, and,
subject to the limit for one (1) person, in the amount of fifty thousand
dollars ($50,000) because of bodily injury to or death of two (2) or more
persons in any one (1) accident, and in the amount of fifteen thousand dollars
($15,000) because of injury to or destruction of property of others in any one
(1) accident.
Liability/Bodily Injury insurance tends to
be the most expensive part of an insurance premium. It essentially protects other people when
you are at fault. It also protects you
personally up to the limits of your coverage.
You should decide if the Idaho minimum required limits of $25,000 per
person/$50,000 per accident are enough to shield you. If you cause an accident and the other
driver’s damages exceed your liability limits, you could be sued for any excess
damages. You can purchase higher limits
of Liability/Bodily Injury insurance.
Common higher limit amounts are $100,000 per person/$300,000 per
accident and $250,000 per person/$500,000 per accident.
Safe & Smart Travels,
Sheli
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