How to Compare Liability Insurance

Liability insurance provides important protection.

A big part of purchasing insurance is protecting yourself from liability. When you buy car insurance your liability coverage protects you if you are in accident where another driver, or a pedestrian, is injured or killed. When you purchase insurance for your home and property, the liability coverage protects you if a guest is injured while on the premises. With so much at stake, it is important for all consumers to determine how much liability coverage they need and carefully compare coverage options.

Instructions

1. Determine how much liability coverage you need before you start shopping. When it comes to liability insurance, it is important to think about the assets you have to protect. If you have substantial assets, have sufficient liability coverage in place to protect the property you own.

2. Consider purchasing an umbrella policy if you need substantial liability coverage. Umbrella coverage provides protection over and above the limits on your home and auto insurance policy, and the costs of that coverage can be surprisingly low. In addition, many companies provide discounts to consumers who purchase their automobile insurance and homeowners insurance from the same company, so the umbrella policy can be even more affordable.

3. 

   Shop around for the best deal.

   Use an insurance comparison website to start comparing liability costs and coverage levels. Sites like eSurance.com and Inswb.com allow shoppers to compare the rates of many different companies on one site. Simply enter your information on the site, including the state you live in and the amount of coverage you need. Once you enter that information, the site will provide a number of different quotes for you to compare.

4. Contact other insurance companies that provide the liability coverage you need. Insurance comparison sites can be a good place to start, but these sites may not include every insurance company doing business in your area.

5. Read the fine print on each policy carefully, and be sure you understand any limitations or exclusions that may apply. This will allow you to compare rates and find the best deal for your money.

6. Check the ratings of each insurer you are considering (see Resources). Companies like Moody's and A.M. Best rate the major insurance companies based on their financial health and stability.

References

• CNN: Liability Insurance
• Insweb

Resources

• A.M. Best
• Moody's