Car insurance is one of the requirements that every driver has to have before getting out on the road. Before someone buys car insurance though, he or she needs to have an understanding of just what it is they’re buying. After all, car insurance comes in a variety of different types, and each policy often has several different components to it. One of those components which is required for someone to legally drive in the United States is liability insurance. Just because someone is required to have it though, that doesn’t necessarily mean that every buyer understands what liability covers. Even when they really should.
What is Car Liability Insurance?
The short version is that Car Liability Insurance covers damages that a driver causes when he or she is at fault for an accident. Liability comes in three, basic types which are:
- Bodily injury; Individual victims
- Bodily injury; Entire accident
- Property Damage
It is important to re-state that liability insurance only covers damages that a driver does to other people. Even if someone damages his or her own home or business with an accident, liability insurance will not cover any of those damages. So, if someone were to drive through their own garage door, run over their own mail box, etc. then those damages would not be paid for with liability coverage.
Why is Liability Such a Big Deal?
The reason that so many drivers and insurance companies are so concerned with liability insurance is that it is one of the aspects that a driver must have in the United States in order to drive legally. While every state has its own requirements for how much liability a driver needs to have in order to be considered legal, all states require drivers to have some form of this car insurance. The reason being that, if someone is liable for an accident, then their insurance will be able to cover the pain, suffering and damages that their driving caused.
Buying The Minimum
On the one hand, a driver that can’t afford the expenses of insurance may want to just buy the minimum necessary car liability insurance. On the other hand though, the minimum necessary coverage might not be the best way to go when it comes to insurance. Many times, particularly in bad accidents, the amount of coverage may simple run out and leave the driver holding the bill for the remainder of the damages, lost wages and injury that other people endured.
It is a far better option to look at what the average liability for an auto accident is in someone’s regular driving area, and to make sure that a driver can cover at least that much damage. That way, in the event that someone gets into a wreck, it’s more likely that they’ll be able to cover everything without issue. While there will always be outliers, such as hitting the one really expensive new car, or losing complete control of a vehicle at high speeds, those outliers are not as likely to be something that an average driver will have to deal with.