You may be buying auto insurance just to comply with the laws of your state. Then liability coverage may be enough. But you need to manage your expectations, as policies with only state minimum limits are very basic. They don’t include many things and may not even provide sufficient liability protection.
So, what does auto liability insurance cover? It is a type of car insurance that provides protection for other people. In other words, it helps you pay for the damages and injuries you or any permitted driver cause to other people. They include two types of protection for others. Bodily injury liability coverage pays for injuries you cause to third parties and property damage liability pays for damages to others’ vehicles and property.
Usually, basic policies come with minimum limits that may not be enough to cover the whole of the damages. In such cases, third parties may sue the person who caused the accident or the vehicle owner.
Liability auto insurance policies don’t provide any protection for the policyholder’s car or injuries (except in no-fault states where minimum coverage comes with personal injury protection). In other words, the basic liability insurance you bought to be able to drive legally doesn’t cover your own car.
It doesn’t matter what happened to your car. It may be stolen, flooded, burnt in fire, vandalized, ruined in a storm or had an accident. The insurer will not be interested at all if you don’t have collision and comprehensive coverage.
If you want to protect your own vehicle you will need to buy full auto insurance that includes liability as well as collision and comprehensive coverage. You can check the difference between liability and full coverage policies in that post.
Not paying attention when you are insuring your automobile can be costly when you have an accident or something happens to it. Insurance isn’t one of the most exciting subjects but not hard to figure out either. If you don’t have the coverage for the damages you suffer your insurer won’t pay a dime. It is as simple as that.
Some people may have limited funds to spare for auto insurance. Then, they may be looking for the cheapest policy they can get. This may solve the immediate problem of getting proof of insurance. However, it may put you in a difficult position when something happens to your automobile like an accident. It is only a good idea to buy the minimum cover if you can pay for repairs or cope with total loss of your vehicle.
If you look for the best deals you may be able to get affordable full coverage policy. For example, buying liability only cover from an expensive insurer can cost you more money than cheaper insurers may charge for full cover. So, take your time and find the lowest rates by getting several quotes. Our quote form can help you locate those deals.