Three Questions About Automotive Liability Insurance
While auto insurance is a requirement throughout much of the country, you may not be aware of what kind of insurance is actually required. The primary concern is that every driver on the road has liability insurance, which is to protect other drivers if you get into an accident. If you do not know much about liability insurance for vehicles, you'll definitely want to learn the following things about it.
What Is Liability Insurance?
The purpose of liability insurance is to safeguard drivers from any financial burden related to an accident they cause. It can compensate an injured party for their medical expenses, any property damage that is caused, and even the legal fees necessary for pursuing the money that is rightfully theirs. If a driver does not have liability insurance, there may be no way for a victim to collect the compensation they deserve to become whole again.
What Are The Legal Requirements For Liability Insurance?
You'll find that every state has its own requirements for liability insurance, with there being different minimum amounts of insurance needed per person and per accident. In addition, some states require that drivers have uninsured and underinsured motorist converge, which gives them protection in accidents where another driver is at fault and doesn't have any insurance or enough coverage.
For example, Florida is the only state that does not have liability insurance coverage requirements, while others have defined minimums. Meanwhile, half the state requires uninsured and underinsured motorist coverage.
What Protection Does Liability Insurance Offer?
If you cause an accident, you can end up with extensive expenses related to property damage, legal fees, and medical bills. Liability insurance provides you with a safety net that covers you up to your policy limits. While you must have the minimum amount of liability coverage, it is always possible to purchase more than the minimum requirement for some peace of mind.
A potential problem that you can run into is not having enough liability insurance. There may be a lot of people in the car that you hit, and your medical bills far exceed the policy limits. If the other driver doesn't have underinsured or uninsured coverage to pick up the difference, they have the option to sue for the damages that are not covered by your policy. This can result in legal fees and having to pay out money that you cannot afford. You even run the risk of wage garnishment.
Talk to a car insurance agent to figure out how much coverage you need for your vehicle.
