You should never get into a car and drive unless you have auto insurance coverage, and the most basic type of coverage you can purchase is called liability. Liability insurance is something that does not protect your car, yet it protects you. If you do not know a lot about insurance, here are the ins and outs of liability coverage you should know.
1. What It Does Not Cover
For starters, liability coverage will not protect your car from damage you might encounter. If you cause an accident, it does not cover damage to your car. If a person vandalized your car, or if hail strikes it, liability will not cover your vehicle. Liability is not designed to cover your possessions in any way.
2. What It Does Cover
So, if it does not cover your car, what is it for? Liability coverage is designed to cover other cars involved in accidents that you cause. If you rear-end someone, or if you pull out in front of a car, you could cause damage to another vehicle. If you do, your liability part of your policy provides payment for the damages you caused to others. Liability coverage, therefore, protects others, and it protects you financially.
3. Why You Need It
You might wonder why you need this coverage if it does not adequately protect you. Well, the truth is that it does protect you. If you did not have it, the person you struck could sue you. You would then be financially responsible for paying the damages yourself. Car accidents are expensive. Would you be able to pay thousands of dollars of damages? Additionally, liability coverage provides compensation for medical bills for anyone injured in an accident you cause.
4. Why Most States Require It
If you look up the rules in your state, you will probably see that liability coverage is a requirement. States require this to protect innocent people, primarily victims of car accidents. If every driver had liability coverage, there would be fewer problems trying to settle car accidents, as insurance companies would pay the claims. The biggest problems arise when people drive without car insurance coverage. Therefore, if you want to avoid breaking the law, you should purchase liability insurance.
Do you need auto insurance? If so, you should make sure your policy includes liability coverage. To learn more about this form of protection and others, talk to an insurance agent today.