amaliaheide: 3 Most Recommended Auto Liability Car Insurance Companies

An effective method for choosing the best car insurance coverage involves performing a thorough evaluation of specific liability clauses from various providers. Auto liability insurance protects the driver from excessive financial responsibility in case an accident occurs.

Without sufficient coverage, a driver could end up paying thousands of dollars for medical expenses for passengers in their own car or for someone in another vehicle involved in the accident.

Auto liability insurance also protects the insured against property damage and accruing expensive legal fees that could lead to a significant financial loss. An ideal car insurance policy should have sufficient coverage to protect against all of the driver?s current assets.

How Car Insurance Company Coverage Differs

Auto liability insurance rates vary according to several factors that include location, personal status, previous driving history, financial background and the type of vehicle being insured.

Location

All states in the U.S., except New Hampshire, require drivers to carry insurance with a minimum of liability coverage. Each individual region has a set of regulations that govern car insurance policies. Auto liability coverage available in Texas, for example, may be quoted differently than a policy protecting a driver living in California or New York City.

Rates are based on the risk of accidents, where a rural address may bring a lower rate than one situated in a major metropolitan area. Caps on auto liability coverage also vary by region such as in Michigan, where the maximum personal injury claim is $500,000. Regional rates can differ by as much as $1500 for identical coverage on a specific vehicle.

Age and Driving Record

In most cases, drivers younger than 25 years old pay higher premiums for auto liability insurance. Younger males are often charged more as are singles rather than married couples. The insured?s previous driving record has a significant impact on liability coverage.

Some of the top recommended carriers such as State Farm, Allstate and Geico will quote higher rates for anyone who has been involved in a major accident, particularly when it involved bodily injury and substantial property damage. Drivers who have a diving record that includes numerous traffic violations, a DUI, DWI or other arrests may need to check with their local Department of Motor Vehicles to find an auto liability carrier.

Credit History

Because auto liability car insurance can cost a company thousands of dollars in claims, the top providers normally perform a credit history during the application process. Drivers with good credit typically receive an advantage of a reduced rate for similar coverage. The consumer has a right to review their personal credit history and to challenge any discrepancies in the report.

Coverage from Top Auto Liability Insurance Carriers

The top three recommended auto liability carriers strive to provide coverage for those who are considered low to medium risk drivers.

Drivers who are considered high risk may not be eligible for coverage unless they take driver safety courses or have a change in personal status or location. Coverage may still be available to these drivers, but will be quoted at a significantly higher rate.

For comparison purposes, the following top three auto liability insurance companies provide similar coverage for a typical example of a driver between 30 ? 40 years old with good credit and a clean driving record.

Actual quotations from each company may differ depending on the home location of the driver, the car usage such as for work or pleasure and the type of automobile being insured.

Auto Liability Insurance Coverage from State Farm

State Farm?s typical coverage for auto liability falls within two basic categories: bodily injury and property damage. Drivers and their passengers are covered for medical expenses, pain and suffering and wages in the case of an accident. Property damage that may include the total cost of the vehicle is also provided. State Farm?s auto liability policies also cover legal and court fees.

Head over to our State Farm car insurance review page for more detailed information on this car insurance company.

Auto Liability Insurance Coverage from Allstate

Similar to State Farm, Allstate offers a scale of coverage but uses three classifications: bodily injury for each person, bodily injury per accident and property damage. The difference is that a dollar amount limit may be established as a total payout for an accident. Insurers have the ability to negotiate how much coverage they want and may choose 1, 2 or 3 classifications. The maximum limits and individual deductible costs are also negotiable.

We have more information on AllState in our car insurance review page.

Auto Liability Insurance Coverage from Geico

Geico?s insurance terms are broken into seven categories that include bodily injury liability, medical payments and a no-fault personal injury protection clause. Property damage liability is also part of the insurance coverage that includes legal defense protection. Insurers work with Geico representatives to create the best policy for their individual needs.

Want to learn more about Geico? We wrote a full review on them! Check it out!

When to Reevaluate a Policy

As a general rule, auto liability policies should be reviewed every year before the policy expiration date. Several other circumstances should trigger an evaluation so that in the case of an accident, all of the driver?s assets will be protected.

Reevaluation Factors:

Purchasing a more expensive vehicle: A new policy is required after the purchase of a new car and presents an opportunity to receive several quotes from the top recommended providers.
A change in personal status: Marriage or a change in living status should be reported to the insurance company and may effect the rate.
Relocation: Insurance coverage may be reduced when moving to a less populated region.
4. Change in Employment: If the vehicle is no longer used for work, auto liability coverage rates may drop.
5. A significant increase in personal wealth: Drivers who receive a large inheritance or have a major change in financial assets during the year may want to increase their liability coverage to protect their assets.