The Issue Of Liability Coverage Essay
Even if I obeyed traffic laws and was the most careful driver in the world, there is always an uncertainty for the events that may occur on the road, such as an accident that may involve myself. As of now I am currently insured under the protection of Allstate. Allstate’s liability coverage protects me ( doesn’t cover my injuries or damages to property) if I am at fault for an accident. Liability coverage is made up of two components: bodily injury liability and property damage liability. The premium for liability insurance is $635.28 covering Bodily Injury ($100,000/person), BI ($300,000/accident), and property damage ($100,000/accident).
Under the Oregon Financial Responsibility Law, I am required to maintain at least a minimum amount of liability coverage, this policy enables me to satisfy the requirements of this law.
Along with liability coverage, I also have comprehensive and collision insurance. Unlike liability coverage, both collision and comprehensive coverages are designed to pay for the repair of my vehicle if damaged in an accident, regardless of who is at fault. Collision coverages apply when my car hits a nonliving object. For collision coverages, Allstate pays for my damages when my vehicle collides with another vehicle or object, after the $500 deductible is paid out of my own pocket, the…