The ballpark model is a type of system under which a person or resident of a particular state or country does not have to carry liability insurance. One of the examples of such a system is in New Hampshire where people venture out on their own risk. The name Ballpark model is given to such systems since just like in a park or stadium where the spectators bear the risk of getting hit by a ball or bat people who venture out on streets aslo bear the risk of getting involved in an accident.

• In some states such as Virginia anyone who drives a vehicle has to pay $500 to the State if they do not have any liability insurance. Generally, the minimum insurance obligatory by law is third party insurance to protect third parties against the financial cost of loss, damage or damage caused by a motor vehicle. This is especially true in developed countries where the number of cars and vehicles are more.
• The Disneyland model is one in which the injured party would bear no risk whatsoever if the damage is caused due to others. This means that the party doing the damage is fully responsible and held accountable for the injury and/or damage caused to others or their properties. Such type of model typically provides cover to those who are not at fault in certain situations.
• For instance if a pedestrian is injured in New Hampshire because of an accident caused by a car then the pedestrian will have to pay for any injuries caused to him or her. This means that the car driver is absolved of the responsibility of paying for the personal or bodily injury that is caused to the pedestrian.
• In the above mentioned case if it is a Disneyland model then the car driver is held accountable for the injury or damage caused to the pedestrian. In such cases the driver is obligated to pay for the medical expenses and other related expenses occurring out of the accident. This payment can be made by the driver’s insurance company if he or she has opted for liability cover.
• The Disneyland model is often promoted as a system by which licensure of motorists and their motor vehicles could be privatized. Before a person would be approved a license plate, they would require to acquire liability insurance with no caps on coverage total. The name comes from the fact that at Disneyland, the company is accountable for whichever accidents that happen to a consumer if they, for instance, ride a ride they were too small for.

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Liability coverage protects the driver of the vehicle in case there is bodily injury or property damage to another entity or person due to the drivers fault. This type of protection does not provide coverage for the damage to the vehicle or the driver but to the aggrieved party who is the victim of an accident caused due to the fault of the policyholder. Therefore it is less costly compared to a pure auto insurance or vehicle insurance policy.

• Liability coverage can be compared to professional liability coverage which is common among people who are in high-risk professions such as medicine and law. For example if a patient dies under the care of a surgeon then the surgeon is protected (financially or otherwise) if the family of the deceased decides to sue. Similarly in auto insurance if a driver damages a property or injures someone with his vehicle then the driver would be covered.
• If for example a driver collides with a telephone booth and damages it then the insurance will pay any cost incurred to repair or restore it. Furthermore if there is any loss of profits due to the accident to any third party then such loss is also compensated. The insurance also covers any bodily injury to any third party caused due to the damage. However in some cases the third party must exhaust their own insurance (if any) before the liability coverage kicks in.
• Liability coverage can be divided into two basic types: combined single limit and split limit. In combined single limit coverage both bodily injury as well as the physical damage done to the property is covered under one combined limit. Payments for the damages to the other driver’s car, as well as payments for injury claims for the driver and passenger, would be paid out under this same coverage.
• In a split limit liability coverage the policy splits the coverage into property damage and bodily injury separately. The payments for bodily injury will be paid out under the bodily injury coverage and any property damage is paid under property damage coverage. Furthermore, bodily injury coverage can be split into two types of payments: maximum payments per person and maximum payments per accident.
• Liability coverage is strongly recommended since the cost of legal proceedings and the punitive damages in case of an accident may be very high. Moreover, the driver would not have to pay for the damage done directly to a person or entity in case of a genuine mistake which led to the accident. It is important to remember that liability insurance does not cover your vehicle or your life. It only covers for third party losses or loss arising due to damage to a property that is not the driver’s possession.

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