What Exactly is Auto Liability Insurance?

Liable = You broke "it" now you fix "it". As in, "The Jury said I was "Liable" for his injuries.

Liability = Something that will cost you money, if it happens. As in, "her 5th marriage creates quite a liability for the potential groom."

Moron = Someone who knows better.

Uneducated Consumer = Moron if he/she stops reading here.

Uneducated Consumer That Exposes himself to big liabilities = First Class Moron!

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Now in the world of insurance; they talk about two types of "liability" you take on when you drive a car:

Bodily Injury:

Also known as your "Biggest Liability".

Why???
Because if you are at fault in an accident (Note to self- they are not called "on purposes") that disables someone; hurts them badly; or even kills them, this is the insurance that gives the other guy "compensation".

You might have heard the lawyers on T.V. talk about "adequate compensation". This means that they sue you for enough money to send their client to MOngu-Mongu for rehabilitation and you pay for the next 20 TV commercials.

Forms of "Compensation":

1. Medical Bills...which may, or may not go on for the next 671 years.

2. Lost Wages... (pray you hit some guy with a wooden license plate that can't prove "lost income" because he never files taxes)

3. Pain and Suffering... which is what you will feel if you do not have enough Bodily Injury Insurance on your car!

4. Whatever other "losses" have resulted from your "negligence" (negligence means you got a ticket; arrested or trusted your 14 year old to hold the wheel while you looked for the box of "Junior Mints" that you smell coming from the back seat). Do not think that "negligence" is an item of clothing you buy your wife for Valentine's Day or you will come to understand both "Pain and Suffering".

Now, most people worry greatly about paying their "deductible" and little about paying "Forms of Compensation." If you still feel that way than we now label you an Educated Consumer that knows better.

Sadly, the only words that we can think of to define such an individual will not make it past our censors. Therefore, we insert the following:

****$$$$!!!!XXXX

Now, what about Property Damage?

Property damage is something bad that you do to something that cannot cuss you out after you have done it.
Thus, it is used to reference "objects" or "things".
This includes, cars, buildings, fire hydrants and the "Scarecrow" on the Wizard of Oz before he met "The Wizard". (It does not include Michael Jackson or former Attorney General Janet Reno, void where prohibited by law).

Imaginary Objects are also not covered:
So, if you are driving in Iraq with George Bush in your front seat and "weapons of mass destruction" in your back seat, you might need to re-read your policy.

How Much Should You Have?

CLICK HERE!