A deductible is the amount that your auto insurance company subtracts from a loss before making payment. Auto comprehensive and collision coverage usually have deductibles because they insure against your own losses. Liability insurance covers other people's losses when you're at fault and normally doesn't carry a deductible.
Types of Liability Coverage
Auto policies have two basic types of liability coverage. When you cause an accident, bodily injury liability covers the expenses of people who suffer injury or death, such as hospital bills and funeral expenses. Property liability pays to repair or replace autos and other objects that you damage, such as fences.
A deductible doesn't make sense for liability insurance because liability means you are personally responsible. The injured party has the right to collect the entire amount.
State Liability Requirements
Each state has laws that regulate how much insurance motorists must have and what kind of coverage companies can sell. A typical minimum state requirement is $25,000 for bodily injury to one person and $50,000 total for all persons who suffer bodily injury. The minimum liability coverage for property damage typically ranges from $10,000 to $25,000.
- Insurance Information Institute: Understanding Your Insurance Deductible
- Cars.com: Car Insurance Requirements by State
- The Law Dictionary: What is Liability?
- Insurance Information Institute. "Facts + Statistics: Highway Safety." Accessed August 13, 2020.
- Louisiana Department of Insurance. "Louisiana Department of Insurance Consumer's Guide to Auto Insurance." Accessed August 13, 2020.
- State of California DMV. "Requirements for Vehicle Registration." Accessed August 13, 2020.
- Insurance Information Institute. "Five Insurance Mistakes to Avoid... (and Still Save Money)." Accessed August 13, 2020.