Cheap Liability Insurance Coverage in Utah
Reader’s Question:
I am getting quite confused about a lot of things regarding these insurances. I’m from Sandy, Utah, and I was about to get an auto insurance. So, I asked my friend, and he told me that I would need liability insurance. He couldn’t explain well what it was all about, though, so here I am asking.
Asher
Sandy, UT
Hi there, Asher. I also asked my agent about that liability insurance thingy, and he explained it to me quite well, actually. Anyways, I don’t know how it is there in Sandy, Utah, but as far as I know, most of the states here in the country make it compulsory that drivers have liability insurance. Just check your state’s laws for this.
By law, liability is required although you do not need to have any additional coverage. Liability is actually cool because it may protect both the other party and yourself especially if the one at fault in the accident is you. I think it covers physical injuries and it also pays for medical bills and lost wages, the properties you damaged in the accident, and also for punitive damages in case the other driver decides to see you in court.
Here is the catch, though. My agent told me the auto insurance company only covers the amount that you have purchased or less. Like if the cost of damages that were involved in the accident totals to $100,000 but the liability coverage you bought is only for $50,000, you’re in trouble because you are going to be the one to pay for the excess. And this is going to be a legal obligation that you will have to accomplish regardless of your bankruptcy or death. So, it affects you for life. It is kind of disturbing because the plaintiff has the power to sue your estate for uncollected damages. But I think it is better to have this just for protection. Just imagine if you don’t have it then suddenly need it.
