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Liability Auto Insurance Information

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Liability auto insurance is any auto insurance policy which satisfies state requirements for minimum insurance coverage

Many states offer options when it comes to satisfying what is called financial responsibility. Financial responsibility is the ability of any licensed driver to pay for damages they may cause to someone else's person or property, and is not a state-of-being demonstrable by a healthy bank account or a balanced check book. Financial responsibility specifically is a dollar amount which any driver in a given state may be held accountable in the event of an at-fault accident in that sate.

Liability insurance is the cheapest way to provide your vehicle with enough protection to meet state financial responsibility requirements. You pay a low monthly premium in exchange for an insurance policy that meets at least the state bodily injury and property damage liability limits, effectively protecting you from a lawsuit in the event of an accident. 

Liability insurance does not however cover damages above and beyond the state minimum limits unless you pay for it. For example: If you purchase a liability insurance policy that covers a total of $75,ooo.oo in bodily injury costs per year, but you inflict 2.5 million in bodily injuries to a family when you collide with their van, they are completely within their right to sue you for the difference. 

For these reasons and more, most insurance agents will recommend that you always purchase more liability auto insurance than is required to meet your states minimum liability insurance requirements. 

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Bodily Injury Liability Insurance

This type of auto insurance coverage applies towards medical costs and expenses stemming from any bodily injury your driving may cause other drivers.

Bodily injury liability does not cover expenses related to injuries sustained by you, your party, or your passengers and is specifically for protecting other people from accidents for which you are found at-fault. Since every driver is required to cover the cost of their actions by somehow meeting their states financial responsibility requirements, it would be the OTHER driver's liabaility insurance that pays your bills in the event of an accident which you did not cause. 

This system ensures that if some one causes an accident which injures you, their liabiltiy insurance pays your medical bills so that your insurance premiums don't rise.

Bodily injury liability insurance requirements dictate that each bodily injury liability insurance policy meet specific state minimums which specify coverage amounts per person, as well as per accident and per year.

 

Property Damage Liability Insurance

Property Damage coverage is pretty self explanatory, and functions much the way that bodily injury coverage does. 

If you cause an accident which damages the vehicle, personal effects or other property of someone else, your property damage liability insurance will pay for the damages up to it's limit so that you don't have to. Property damages beyond the limit of your property liabilty coverage are still eligible for litigation however, and you may still be sued if you only purchase the minimum coverage amount and end up totalling a milion dollar car while driving. 

Again it is the case with this type of liability insurance that you're not afforded any protection against your own personal property, personal effects, or vehicle

 

Compulsory Insurance

If in your state, there are no statutory alternatives by which you can demonstrate your financial responsibility besides liability auto insurance, then this type of insurance can be said to be compulsory or mandatory. 

Missouri offers several alternatives for proving sufficient financial responsibility which include submission of: A certificate of deposit in a specified amount, a certificate of self insurance, a bond from a licensed bonding agent, or liability auto insurance policy and a certificate of proof thereof. 

Because of all of your options, Missouri cannot be said to be a compulsory insurance state, but  liability insurance is still the least expensive option for most people.