Liability Insurance and You
In most states, you are required to have two types of auto liability insurance in order to drive your car on the road. If you don’t, not only can you be severely penalized for driving without insurance, you may be legally liable for damages that occur due to an accident found to be partially or fully your responsibility. Liability insurance is important to have, and while rates may vary depending on which auto insurance company you choose, the price of not having it is always higher.
Bodily injury liability insurance is one of the two vital types of insurance that you’ll need to purchase. This insurance is available to drivers with a very simply concept in mind. If you get into an accident and injure someone, your insurance will cover that person’s medical bills and pay for lost wages during recovery. This claim will be opened on your insurance if you are found to be fully at fault, or in many cases, if you are found to be partially at fault for the accident. The limit of how much can be covered by your insurance will depend on what plan you select.
Property damage insurance is the second of the two vital types of insurance that you’ll need to drive legally on the road in most states. The concept is similar to bodily injury insurance, except that instead of paying the medical bills, your insurance company will pay the bills to repair the other person’s car. This insurance will cover any body work, including replacement of parts, repainting, or replacement of the entire car.
If you don’t have liability insurance, you get into an accident, and it’s determined to be fully or partially your fault, you will be required to pay these bills. Likewise, if you choose too low of a limit, you may be responsible for additional payments.