What Is Automobile Casualty Insurance?
All states require the owner of an automobile to carry casualty insurance coverage, also known as liability insurance, at minimum limits. What exactly is automobile casualty insurance?
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Definition
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Casualty implies hurt or damage to another. Automobile casualty insurance covers damage caused by the car to an individual or property. Casualty insurance also covers any legal fees associated with the injury.
Types
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Bodily Injury (BI): Covers injuries to a person, including death. Medical expenses, loss of income, and pain and suffering would all be covered under the BI portion of casualty insurance.
Property Damage (PD): Covers damage to a person's property. This damage could be to an automobile, a fence, a house, or any other property. -
Features
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Limits state the maximum amount of coverage provided by the policy. Automobile casualty insurance policies usually carry different limits for BI and PD, known as split limits. BI coverage limits are further separated as per person and per accident. A casualty limits profile of 20/40/10 would be $20,000 per person for BI coverage, $40,000 total per accident for BI coverage, and $10,000 per accident for PD coverage.
Point of Interest
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What happens when an uninsured driver injures you? That injury would be covered by your uninsured motorist insurance. This coverage acts like casualty insurance, but for the owner of the automobile. It is important to carry uninsured motorist insurance to protect against uninsured motorists.
Warning
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Almost every state requires casualty insurance to be carried by all automobile owners (as of early 2010, New Hampshire and Wisconsin did not require automobile insurance, although new insurance rules take effect in Wisconsin beginning in June 2010). States that mandate insurance also specify minimum coverage limits
Other Considerations
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Automobile casualty insurance is in contrast to automobile property insurance, which covers damage to the car insured. Casualty insurance is usually mandatory, while property insurance is always voluntary.
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References
Resources
- Photo Credit car crash and police rescue team image by Canakris from Fotolia.com
