Honestly, I had no knowledge about liability insurance for a long time. I suffered a lot because of a property issue and realized the importance of liability insurance. Trust me or not, this should be a must thing in life.
I do not want anyone else to suffer like me. And so, I am going to share all the details about it. But before that, Do you know what liability insurance is?
Allstate, an American insurance company, has been serving since 1931. They are continuing to provide customer satisfaction. This company helped me like a savior with their liability insurance facilities.
I am going to share my experience with them below. At the same time, I will try to help you by giving information that I’m sure you didn’t know before.
But those who are not familiar with their services might get confused. What does Allstate liability insurance cover? This is a legit question for new ones.
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Liability insurance
Most of you know about the general insurance system. Liability insurance is one of the parts of it. The actual purpose of liability insurance is to keep the buyer risk-free.
It even helps to protect your business when someone files a case against the company. If you get involved in any unwanted damage or injuries to others, liability insurance will work to protect you like a shield. In a word, It will try to reduce your loss or any financial loss.
Auto liability insurance
Suppose you have faced an auto accident; of course, that was unwanted. Now, if you are judged to be at fault, auto liability insurance helps to safeguard your finances. But how does it work?
You might know that drivers must have liability insurance in most states if you are living in America. It works by paying the overall medical expenses of the wounded one. If someone’s auto gets damaged by an accident, this insurance also pays for the repair.
Moreover, Allstate offers rideshare insurance in most states. An add-on of Allstate named ‘Ride on hire’ is especially for those customers who drive for Uber or Lyft. You can be covered by Allstate’s ride-sharing insurance till your app remains active and also if it is included in the standard policy.
Here comes the part you were waiting for. What does Allstate liability insurance cover? I am going to answer in detail to make you understand properly.
Firstly, you should know that Allstate liability insurance has two forms. One is Bodily injury liability coverage, and another is property damage liability coverage. I am describing these two below :
Bodily injury liability coverage
If you are guilty of someone’s bodily injury, then this insurance pays the injured person’s medical bills on your behalf. It can be medical bills or the bills for tests. It is called “BI” in short.
My friend had an accident three years ago. The accident was caused because of his reckless driving. In that accident, four people were injured, but fortunately, my friend got no injuries.
Bodily injury liability insurance saved my friend by paying the expensive medical bills of 4 of them. That is why BI can be a savior in worse times than one ever thought of.
Property damage liability coverage
If you damage someone’s property, property damage liability coverage will help you pay for the repair. This particular coverage makes you hassle-free from property damage issues. It is called “PD” in abbreviation.
Previously I have said that I faced a few property issues and got the solution. Let me share my story in short here. A car was rear-ended by me a few years ago.
The payable amount was too much for me. Luckily, I had liability insurance. Otherwise, It would be an enormous difficulty for me to pay the full price.
Allstate paid the auto shop fees, and I got released from paying the total amount. So, My suggestion will be to obtain liability insurance before hitting a car from behind!
Now, how much it will pay per person and per accident is coming to the point. I have seen many people having liability insurance get confused about it.
Coverage limits of liability insurance
I am sure some of you think there are no liability insurance pay limits. But that’s a misconception. It depends on the coverage limits that you will choose.
It will be your preference whether you choose to purchase more than the minimum set by your state or not. This is the same for both bodily injury liability and property damage liability.
Bodily injury liability limit
There can be several people injured by accident. Also, there can be more than one accident. You must know the coverage limits in both cases.
- Limit of per person
The Allstate Company will give the maximum compensation for each victim. For example, if four people are injured because of the accident you caused, each of the victims or injured ones will be paid.
- Limit for per accident
Establishing the limit according to your comfort is crucial because more than one person’s medical bills can be required. Your insurer will pay the entire amount for a single accident caused by you.
Property damage liability limit
As I have already said that setting the limit is your choice. The insurer will pay the maximum amount for repairing the property damage. But it would be best to keep in mind that the total compensation will not exceed your chosen limit.
Bodily injury and property damage limits remain in the insurer’s package. Let me explain to you in numbers :
- It can be $25,000 per person or $50,000 per accident limit in bodily injury. For property damage, the limit will be $10,000.
- Or, It can be $1,000,00 per person and $3,00,000 per accident limit in bodily injury. The limit will be $50,000 for property damage.
It would be best to choose your package limits between these two options. Also, your insurer can offer you a package that determines your coverage limits.
Things not covered by liability insurance
I have already discussed the coverage limits of liability insurance. But not all are covered by this insurance.
Before having one, you must know what your liability insurance does not cover. Let’s discuss that vital issue now:
- Any repair damage to your car
Allstate liability insurance would not pay for any repair damage to your car if you met an accident. Collision insurance can do that for you. But it does not mean that Allstate has no such insurance to pay for your own.
Now, what is collision insurance? This kind of insurance or coverage helps you repair your damaged car due to an accident. It also helps in replacing your vehicle.
- Any stolen case of your car
Liability insurance will not be going to pay if your vehicle gets stolen. Well, Allstate offers you comprehensive insurance for dealing with such occurrences.
Comprehensive insurance is different from collision insurance. That means this insurance or coverage helps you get rid of the damage not because of a collision. It also helps to replace your car or any other vehicle if stolen.
- Any bodily injury of your own
As you already know, liability insurance helps to pay for someone else’s injury. This line proves that the insurance will not pay for your bodily injury.
I know this sounds hurtful. But let me assist you with helpful information. For that, you will need personal injury protection from Allstate.
We often meet with accidents and get injured. Personal injury protection will help you pay your medical and hospital bills. You need to find out whether this insurance is available in your state or not.
Additional features of Allstate
One lucrative feature they have is that if you drive safely for six months at a stretch, you can get your money back. Sadly, they do not offer this feature in all the states. Isn’t it amazing?
Another feature is forgiving accidents. Generally, your rates increase for every accident. Sounds shocking, right?
This feature will not increase even a bit though the fault is yours. You have to pay extra to avail yourself of these additional features.
Frequently asked questions
Can I set specific limitations in my package?
No, you can not set specific limitations in your package. The insurer will offer you packages, bodily injury, and property damage insurance. You can not change that limitation or exceed any of those.
How much does liability insurance cost?
Well, it depends on a few things. First, you will get coverage as much as you purchase it. So, It’s pretty much like the higher you buy, the more will be paid for your necessity.
It may come to your mind that What does Allstate liability insurance cover? Here, the answer can be the more coverage you can purchase.
It would be best if you discussed your limit with your insurer frankly, and they will provide you with all the details. If you want to adjust your limit, I’m sure you can do that too.
How much should liability insurance be wise to buy?
I have a few helpful suggestions as an answer to this question. But before that, I am sharing my neighbor’s incident.
Last year, there was an accident driving him in another car. Three people in that car were severely injured. Two of the headlights of that car were also broken.
As a result, my neighbor had to pay for everything. He had liability insurance, too but with some limitations. The insurance company paid for two people and the car’s repair costs.
He had to pay the rest from his pocket. So, here is the learning from his story. It is wise to purchase high liability limits.
But you should know the minimum requirements of your state first. And then, you can move on to purchase so that it relaxes you during bad times.
Is the customer service of Allstate satisfactory?
My first experience as a customer with Allstate was not pretty good. But I hope they have improved their customer service now.
In an online survey held in July 2021, Allstate got 80 out of hundred in a poll voting from customers. That is entirely satisfactory, in my opinion.
How can I file a claim with Allstate?
You can file your claim through their mobile app or website. Also, you can call an Allstate agent at 1-800-669-1552.
Does Allstate give any discounts?
Of course, Allstate gives many discounts such as safe driving discounts, discounts for a new car, anti-theft devices, etc. It provides a good discount even if your car has anti-lock brakes. An interesting fact is that Allstate will offer you discounts if you use their ‘Drivewise app’.
What facilities can the Allstate app provide me?
There are a lot of uses for the Allstate app. You can claim your insurance by photos with the app. Moreover, you can pay bills, get emergency roadside help, etc.
Is liability insurance included in the full coverage insurance of Allstate?
Yes, liability insurance is included in the full coverage insurance policy of Allstate. Full coverage insurance is not specific but an overall combination of all the coverage types.
The final words
Allstate has been a well-known insurance company for many years. They are primarily famous for varieties of car insurance policies. Although, they have many more customer-friendly policies.
Now the mighty question comes, “What does Allstate liability insurance cover?”. Well, I am sure I have discussed everything about it. But yesterday, a friend asked, ” Does Allstate liability insurance pay for deaths too?”
I gave him a positive answer. I know a person’s life can never be measured by money. Also, it sounds a bit weird.
But it is the policy of Allstate that the insurer will also pay for death from an accident caused by you. It would help if you only kept in mind that the insurance will not exceed your already set limits.
I also suggest you purchase insurance that will be suitable for you. I encourage you all to compare insurance quotes. Then you can be able to find out the best rate for you.
Mehedi Hasan is an insurance expert with over 6 years of experience in the industry. He has a deep understanding of various types of insurance policies and is skilled at helping clients find the coverage that best fits their needs. In his current role, Mehedi works as a consultant, advising businesses and individuals on the best insurance options for their specific situations.
He is also a frequent speaker at industry events, sharing his knowledge and expertise with colleagues and professionals in the field. Mehedi holds a degree in insurance and risk management and is committed to staying up-to-date on the latest industry trends and developments. In his free time, he enjoys reading, traveling, and spending time with his family.