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Auto Casualty Insurance: What Kind of Coverage to Expect

Updated: January 3, 2018

Auto casualty insurance is another term related to car insurance that is confusing and often misunderstood.

A lot of people think that auto casualty insurance is a specific type of policy, but it is really another word for referencing existing policies.

Auto casualty insurance is another way to describe liability coverage, which exists in almost every type of auto policy.

This type of insurance is very important, because it offers protection against liability cases brought by other people for negligent acts.

Both companies and individuals tend to get auto casualty insurance, because they do not want to pay out of pocket in these cases.

What is Auto Casualty Insurance?

Casualty insurance a term that is defined in an extremely problematic manner. This is insurance that can apply to a variety of fields, such as car insurance, health insurance and property insurance. It is liability coverage that protects people or companies from mistakes and negligent acts.

Do you want to pay out of pocket for these cases? The answer is probably no. That is why auto casualty insurance exists.

If someone gets into a car accident that was their fault, the other party will probably sue them for compensation related to car damages and medical expenses. They may even sue for lost earnings. This is why everyone needs liability coverage.

Do you want to pay out of pocket for these cases? The answer is probably no. That is why auto casualty insurance exists. It ensures that the company is responsible for paying out auto insurance claims if the policyholder makes a mistake that causes damage to another person or their property.

There are other forms of casualty insurance depending on the policyholder’s specific needs. Some people may prefer deeper coverage if they are worried about paying high out-of-pocket compensation.

It is usually businesses that go with the higher and more in-depth forms of casualty insurance.

Who Needs Auto Casualty Insurance?

Following from the previous statements, it is clear that everyone needs some form of auto casualty insurance. For a regular car owner, this translates to having liability insurance as part of their package. Even the cheapest form of auto insurance needs to have liability coverage.

With casualty coverage, the auto insurance claims will take care of these lawsuits or compensation requests, and the business only pays a minor amount out of pocket.

This not only protects you from negligence on your part, but it protects the other drivers who are on the road. After all, they are also impacted by your lack of liability coverage if you cause an accident and do not have the means to pay them compensation.

Businesses also need auto casualty insurance. This is especially true for businesses that require their employees to go on the road for various reasons. If the employee gets into an accident, it is the business that finds itself sued.

With casualty coverage, the auto insurance claims will take care of these lawsuits or compensation requests, and the business only pays a minor amount out of pocket.

Even if someone wants to save money on auto insurance, they should never ignore liability insurance because the consequences of not having this insurance are potentially disastrous.

Levels of Auto Casualty Insurance

Casualty insurance is something that is very elastic in terms of its meaning. This is also true for auto casualty insurance. There are many different levels of liability coverage. Most liability insurance aspects of a policy will cover the property damage, medical expenses and lost wages of the other person in a car accident – if the policyholder is to blame.

A business that has a lot of vehicles will likely get a higher level of casualty insurance.

The amount of liability coverage in a policy depends on where a person lives and what kind of policy they chose. Some drivers get what is minimally allowed, while others will get more coverage because they want to remain protected in case something bad happens that was their fault.

A business that has a lot of vehicles will likely get a higher level of casualty insurance. They will extend their liability coverage to levels that protect against significant lawsuits – with some companies getting insurance that covers up to $1 million in compensation claims or lawsuits.

Types of businesses that commonly go for the higher umbrella liability coverage are the ones that have large vehicles going from one part of the country to another.

Big trucks that travel long distances are likelier to cause a crash and cause significant damage in those crashes.

Legal Requirements for Auto Casualty Insurance

With auto insurance designed to protect everyone on the road, many states in America make it a legal requirement to have some form of insurance when driving. The part of auto insurance that is legally regulated is liability coverage.

Drivers who do not have this minimum level of liability coverage, or any type of auto insurance policy, are violating the law when they take their car on the road.

This form of auto casualty insurance is regulated so that all drivers have an insurance contract that pays for the damage they cause through negligent driving.

When you are living in a state, the cheapest auto insurance quotes you see from companies that serve this state will include the minimum liability coverage required by the government. These companies cannot sell insurance that goes below that liability level.

Drivers who do not have this minimum level of liability coverage, or any type of auto insurance policy, are violating the law when they take their car on the road.

It is possible that these drivers will have to pay heavy fines, or have their license suspended, if they are caught driving without insurance.

Other Types of Auto Insurance

Drivers must remember that auto casualty insurance is only protecting other drivers from your negligent actions. It is doing nothing to protect you from the mistakes you make while on the road.

If you get into an accident and are found responsible, collision coverage will pay for the damage that occurs on your vehicle.

This is why a lot of car owners decide to get additional forms of auto insurance. They also get collision and comprehensive auto insurance coverage, because this protects their car from mistakes that they make while driving. It also protects them from damage that occurs while the car is not being driven.

If you get into an accident and are found responsible, collision coverage will pay for the damage that occurs on your vehicle. This can save you thousands of dollars that you would have to pay out of pocket.

Comprehensive coverage is there to protect against your car being stolen, vandals damaging it from the outside or natural events that could cause damage while the car is parked at home or in a parking lot.

Drivers can also get personal injury protection for any medical expenses that they must pay if they get injured from the accident that they caused through negligent driving.