Liability Insurance Coverage

What is Liability Insurance Coverage

If you plan on driving a car on the streets and highways of America, be sure your auto insurance policy includes liability coverage. The reason is – you can’t legally operate a vehicle in most states without it. And, should you get stopped without the proper coverage, which includes the minimum limit requirements, you could be looking at severe penalties. Now, if you’re fairly new at obtaining car insurance, the next question you might ask is – what exactly is liability insurance and what does it cover?

At the outset, it’s important to stress that, of all the different types of car insurance, liability coverage is mandated by virtually every state in the U.S., except for a couple. And, there are, actually, two parts to liability insurance: bodily injury liability and property damage liability.

As to what it does for you – aside from allowing you to drive your vehicle legally within the state, the coverage also protects you if you’re at fault for an accident and you injure someone or damage someone’s else’s property. It can also provide you with legal defense if the other party decides to file a lawsuit against you.

What Else is Typically Not Covered by Liability Insurance?

The problem with not carrying full coverage insurance is that liability insurance alone doesn’t pay for damage to your own car or costs related to your own injuries from an auto accident you cause.

That’s where collision and comprehensive coverage come in. Not only will collision protection cover the damage to your vehicle, but comprehensive will protect you against losses caused by covered events not related to a collision. These events commonly include: theft, vandalism, fire, storms and natural disasters, such as a hurricane or a tornado, falling objects or animal damage.

When comparing free auto insurance quotes for liability coverage, you may want to consider raising the minimum limits because, as often is the case, you may not have enough to cover the damage or injuries to other motorists you’re responsible for. And, when shopping for coverage for your teen driver, be prepared for sticker shock. Teen car insurance will automatically send your premiums into orbit.

So, don’t short-change yourself when it comes to car insurance. Get as much insurance as you can afford to include: liability, uninsured/underinsured motorist, collision, and comprehensive. In the long run, it may turn out to be a wise decision.