Understanding Liability Insurance in Washington, D.C.: What Drivers Need to Know
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Liability insurance in Washington, D.C., is a legal requirement, as it is in almost every state. Even if drivers were free from the requirement, liability insurance — and all auto insurance, for that matter — offers critical financial protections should an accident occur. By understanding the intricacies of the coverage and its legal mandates, you protect yourself and limit legal troubles.
Introduction to Liability Insurance in Washington, D.C.
While not the same, liability car insurance is similar to general liability insurance in Washington, D.C., because each pays for bodily injuries or property damage from an accident; it's just that general liability insurance protects a business owner. General liability covers other business-specific issues, but the idea behind both types of insurance is financial protection.
Regarding automotive liability insurance, the coverage provides financial protection for drivers who harm their property or someone else in a car accident. The limit of the protection depends on your policy, but Washington, D.C., has required coverage limits.
What Does Liability Insurance Cover?
Liability auto insurance helps pay for damages your vehicle causes to others and their property. The coverage doesn't provide financial relief for the policyholder's personal injuries or property damage; the policyholder needs personal injury protection to cover their property loss and medical expenses.
Liability coverage offers bodily injury liability and property damage liability protection for the at-fault driver. While D.C. is a no-fault state, the mandatory liability requirements ensure all drivers have adequate protection on the road.
Bodily injury coverage in a liability insurance policy covers injuries to someone else. The plan can cover medical expenses and lost wages. In some situations, liability coverage might pay for pain and suffering.
Aside from covering medical expenses and other out-of-pocket costs, an insurance company offering liability insurance in Washington, D.C., pays for property damage to another person's car, property, or personal effects.
The amount a policy pays out depends on the liability coverage. Most policyholders may also have to pay a deductible before the insurer approves additional payouts.
Minimum Insurance Requirements in D.C.
Before shopping for Washington, D.C, car insurance, be sure you understand the district's mandatory insurance requirement. Liability insurance is compulsory in the state and must cover bodily injuries and property damages up to a minimum value.
The mandatory minimum for bodily injury coverage is $25,000 per person and $50,000 per accident. Vehicle owners must also have property damage coverage of $10,000 per accident.
Beyond bodily injury and property damage requirements, owners must have uninsured motorist coverage. The bodily injury coverage for uninsured motorists is $25,000 per person and $50,000 per accident, the same as above. However, the property damage coverage for uninsured motorists is only $5,000 with a $200 deductible.
The mandatory minimums for liability insurance in Washington, D.C., do not represent the maximum coverage options available to drivers. You can customize your liability policy to suit your needs as long as you meet minimum mandates.
Consequences of Driving Without Proper Coverage
As with D.C. general liability insurance for businesses, liability insurance for vehicle owners is required. If you do not have the proper coverage, you may face fines, registration suspension, license suspension, and vehicle impoundment. Fines increase over time.
In D.C., insurance companies must notify the Department of Motor Vehicles of insurance cancellations or terminations. You cannot hide a lack of insurance from the district. All drivers must maintain continuous, valid insurance for registered vehicles.
Benefits of Higher Coverage Limits
Most insurers recommend buying higher liability insurance coverage than D.C.'s minimum requirements. By purchasing higher coverage, you can better protect your assets, such as savings and investments. If your coverage is too low, you risk being forced to sell investments and other items to pay legal fees and medical costs.
Evaluating Your Individual Insurance Needs
When shopping for liability insurance in D.C., it's important to go beyond the minimum mandates. The minimum requirements don't offer much protection after serious accidents. A better coverage plan is $500,000 or more per person and $1 million per accident. Some insurance professionals suggest getting coverage that matches your net worth.
Unfortunately, the higher your coverage, the more expensive your insurance premium will be. You can reduce your premium by shopping around and finding an insurance quote within your budget. Increasing your deductible might help reduce your costs but also puts you at risk. Talk to an insurance agent to discover other ways to lower costs.
Get Insured Today!
Liability insurance in Washington, D.C., is essential and mandatory. Shopping around for coverage that fits your budget and offers the most financial protection possible is important. Check out EverQuote, a tool that helps you compare several reputable insurers in one place, making the decision process that much easier.