Auto insurance is a product you need if you own or drive a car. Fortunately, you can choose the coverage types you want. Choosing a liability-only policy is the best way to cut your premium costs, but having this type of insurance might not give you an ample amount of protection. Here are some basic principles of liability auto insurance that you should understand.
Liability Protects Others
The main thing to know about liability coverage is that it protects others. Liability does not directly protect your car, but you can purchase insurance types that do. Liability pays for the damages of other people if you cause a collision.
Liability Insurance Provides Several Coverage Types
If you cause a collision, your liability coverage offers several coverage types to the victims in the other vehicle. First, it provides money for them to repair or replace their car after an accident. Second, it provides money for their medical bills if they incur injuries from the collision. Finally, it might offer additional compensation to the victims for other things, such as lost wages from not being able to work after an accident.
Liability Insurance Is a Legal Requirement in Most Areas
Carrying liability insurance on your auto insurance plan is a legal requirement in most areas. If you are not sure if your state requires this, talk to an insurance agent. If your state requires it, you should not drive without it.
Liability Protects You from Lawsuits and Financial Problems
Liability coverage is more about covering other drivers, but it still offers some protection for you. If you cause an accident and have liability coverage, the victims may not be able to sue you. Therefore, your liability insurance protects you from lawsuits and financial problems. Having liability insurance is a necessity for any person who wants to drive.
Liability Is Not Enough if You Have a Loan
The final thing to know is that liability insurance is not enough protection for people who have car loans. In fact, your car loan lender will not let you have a liability-only policy. They will require adding collision and comprehensive coverages to your plan.
You can choose from many types of car insurance, and you might want to discuss your needs with an agent. An insurance agent can provide more information about your options and the costs for coverage. Contact a company, such as Kesner Insurance Agency Inc, for more information.