Does SR22 Insurance Cover Damage to Other Vehicles?
Reader’s Question:
Does my sr-22 insurance cover the other vehicle if its my fault?
Rey
Good Question Rey.
SR22 is to show proof that you have necessary coverage that meets the state’s minimum financial responsibility laws.
If the state includes Property Damage Liability as a requirement, then that policy will cover the other vehicle, up to the limit on your policy.
Property Damage Liability
This covers you if your car damages someone else’s property. Usually it is their vehicle, but it could be other properties like a house or any other property damaged in an accident. This would also provide you with legal coverage if the other party files a lawsuit against you. It is best to buy enough of this insurance to get you fully covered since this will include the amount of damage your car might do to another car or properties. This coverage is limited to the terms and conditions in the policy.
If you have a very low limit, you may put yourself at risk in terms of financial cost. For instance, if you or a driver covered by your policy cause a serious accident where the damages exceeded your limits, you will be responsible for the cost above your limits. You might be forced to liquidate property, savings and other assets just to make that payment. You may be able to help yourself be protected from this risk if you purchase liability limits to account on your assets and future net worth.
Goodluck!
MariCAR