What Is Limited Liability Car Insurance?
The average cost of a car accident is $16,000. Unfortunately, if you’re not careful with your insurance policy limits and coverage options, that could all come out of your pocket. It goes downhill, especially if you’re renting a car.
If your car gets hit and it’s damaged in the process, there isn’t much anyone can do about it. This leaves drivers without protection if they get into an accident where their vehicle sustains damage. And this could leave them on the hook financially for thousands of dollars in repairs.
Limited liability car insurance is a perfect choice if you are renting a car. It provides limited coverage for bodily injuries to third parties and property damage to other cars and their contents during a specific period.
The insurance is limited because it does not cover any damage to the rental car itself or damage to the driver or passengers. This type of policy offers other benefits, such as loss if your rental vehicle has been stolen or damaged beyond repair after an accident that was not your fault.
If you have this type of policy, then you will be covered by your own personal auto insurer's collision deductible up to $500 per incident (up to $1,000 per year). You can choose from several different companies with various rates, so there’s something out there for everyone.
You might be surprised to learn that many states have minimum coverage mandates for auto insurance, but these requirements are mostly limited to liability insurance. So you should always check the criteria of your state before buying insurance so you can decide accordingly.
Suppose you want more comprehensive coverage than just liability insurance. In that case, it is smart getting additional coverages like collision and comprehensive insurance, which will protect your vehicle from all types of accidents.
To learn more about different types of insurances, visit Lakeville Motor’s blog section.