Passenger Liability Insurance Meaning – Driving anywhere in the world (and especially in Malaysia) comes with its fair share of responsibility. Knowing what these tasks are and what is expected of you can help you prepare well for what lies ahead. As an active or even passive driver in the country, you probably already know the importance of basic car insurance coverage and why you need it. Going deeper, however, there are other essential aspects of car insurance coverage that you may not be as familiar with. One is the legal liability for LLTP or LLNP passengers for a short period of time.
In very basic terms, Legal Passenger Liability or LLTP can be defined as a type of special cover that you can take out on top of your normal car insurance cover. The purpose of this special addition is to protect you against legal liability incurred by your passengers if you were involved in an accident as a result of your actions. Although this situation may seem extreme, it happens more often than you might think. Therefore, it is always ideal to stock up for this.
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At first glance, it may seem unnecessary to accept the additional cover offered by legal liability for travelers. After all, if you’re a driver who already has full insurance, you’re probably already protected, right? Easy!
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While a comprehensive policy certainly covers many situations, it does not extend to protecting you from legal liabilities incurred by your own passengers. Your policy states this in detail in Section B of your car insurance cover document. In other words, assuming you had friends or acquaintances in your vehicle and you were involved in an accident that was your own fault, if the victims sue you and no insurance your liability for passengers, these costs must be covered. in your own pocket. Do you see why acquiring legal liability for travelers might not be on the top right now? Wait, there’s more!
The answer to this question depends on where you plan to drive. While countries like Singapore require you to take out this extra cover before you can drive unrestricted, Malaysia allows drivers to roam the roads freely without any legal liability for passengers. However, apart from the legal aspects of whether or not you should have legal liability towards passengers or LLTP as a driver, there are some variables to consider. For example, while you may not receive any rewards or compensation for transporting friends and colleagues from one location to another, you are still legally obligated to ensure that they are safe from the moment you pick up. them until you leave them. . take them away. So, by extension, if anything were to happen to them during the time they were in your care, they have the right to sue you, especially when they believe the accident was your fault . From this point of view, it is almost essential to get LLTP.
No one would ever want to find themselves in any of the unpleasant situations described above. In one way or another, it always pays to be ready and prepared for any event. In general, LLTP/Passenger Liability does not usually cost more than 25% of what you pay as a premium for your basic liability insurance policy. So contact your insurer and check out their LLTP/Passenger Liability policy today! Most or all of the products shown here come from our partners who free us. This can affect the products we write about and where and how the product appears on a page. However, this does not affect our rating. Our opinions are our own. Here is a list of our partners and here is how we make money.
Auto liability insurance is coverage that pays to repair damage your vehicle causes to other people and their property. Liability simply means “responsible,” so liability insurance pays when you’re at fault in an accident.
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There are two types of liability auto insurance – bodily injury liability coverage and property damage liability coverage – and most states require you to have both. Here’s the difference between the two and how much liability insurance you need.
Liability insurance is the part of your car insurance policy that pays for expenses when you cause an accident. It has two main parts:
This coverage pays if you injure others in a car accident for which you are responsible. Personal injury liability insurance, or BI, typically covers things like medical expenses, recovery treatments, and lost wages if someone can’t work while they’re recovering. It may also cover funeral expenses after a fatal accident.
This coverage, sometimes abbreviated as PD, pays for damage you do to vehicles or other property when you are at fault in an accident. For example, it might pay to fix the other driver’s car or replace a fence you installed.
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Let’s say you drive into a small fender and the other driver had a $4,000 crystal in the trunk that is now in glittering debris. Your liability insurance that covers property damage will cover the replacement of the crystal and bumper.
In addition to personal injury and property damage, auto liability insurance can also cover attorney fees or court costs if you are sued after an accident.
Vehicle liability insurance will only pay up to the maximum amounts, or limits, specified in your policy. If the damage caused by an accident exceeds these limits, you will have to pay the excess yourself.
Most auto insurance policies have three main liability limits, which are often summarized by three numbers. For example, you might see something like “25/50/25” as the minimum amount of coverage your state requires. Here’s how to explain that.
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Limits of liability for bodily injury per person. The first number is the maximum your insurance will pay for injuries suffered by one person after an accident. (In the example above, “25” means $25,000.)
Limitation of liability for bodily injury per accident. The second number is the maximum amount of injuries for everyone injured in the accident, not including your own injuries. The maximum amount per accident will be if multiple people are injured in an accident. (The “50” above, means $50,000.)
Limitation of liability for accidental property damage. The latter figure represents the maximum amount your insurance company will pay for property damage you cause. This includes damage to cars, buildings or anything else that is not a person. (“25” above means $25,000.)
Difference: while liability for bodily injury has a per-person limit, liability for property damage only has a per-accident limit. If you hit three cars, the total your insurance will pay will be represented by that last number ($15,000 in this example), and you will be responsible for the rest.
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Imagine you cause an accident that injures three people and their medical expenses amount to $10,000 per person. Your 25/50/25 liability auto insurance would cover this because the cost of each person’s injury is less than the maximum of $25,000 per person and together their injury costs are less than the policy’s $50,000 highest.
Some insurers offer an alternative to limited auto liability coverage called single limit liability. A Single Limit of Combined Liability is a broader limit of liability to cover both bodily injury and property damage. In many cases, the flexibility of this type of liability insurance means better financial protection than shared coverage.
For example, let’s compare the above split liability limit (25/50/25) with a single aggregate limit of $50,000. Suppose you injured two people in an accident and one needed $10,000 in treatment while another needed $50. With shared liability, you could be paying $25,000 for the second person’s injuries because the treatment exceeded your policy’s maximum of $25,000 for each person. But with a single total limit of $50,000, all treatments would be covered.
Auto liability insurance won’t pay for your own medical bills or car repairs – it’s just designed to pay other people for damages you cause while driving.
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To cover your own bills, you will need to rely on other types of insurance, such as health insurance for your medical expenses and accident insurance for your vehicle repairs. If you want more protection, consider getting comprehensive car insurance. Comprehensive coverage is not a specific type of policy, but refers to a variety of coverage types, including liability insurance and comprehensive and accident coverage.
All states except Alaska, New Hampshire, and Virginia require all drivers to have vehicle liability insurance. (Virginia waives the liability requirement if you pay $500 a year to the state, and Alaska exempts some residents from the minimum required.) Each state sets its own auto insurance requirements. lower, and many require additional types of insurance. (See table below)
These requirements are in place to protect drivers who are not at fault in a wreck. If you are involved in an accident and another driver is at fault, you should be able to get back on your feet quickly. Auto liability insurance makes this possible.
The national average cost of minimum auto insurance, which typically includes auto liability insurance and other state-mandated coverage, is $561 a year, according to a recent report.