Almost 13% of drivers don’t have any auto insurance. Some people fail to buy insurance because they think it’s too expensive, while others think they don’t need it.
If you want to drive, you’ll need to buy insurance. You should purchase auto liability insurance at a minimum, but you can also purchase more types of protection to add to your policy.
The most affordable type of insurance is liability coverage. If you have questions about this insurance type, continue reading this guide for a brief introduction to auto liability insurance.
The Protection It Offers Is for Other Drivers
Auto liability coverage is insurance that you purchase to protect other drivers. If you don’t know a lot about insurance, this might sound silly, but it serves a key role.
When you drive and cause an accident involving another car, your vehicle coverage compensates the other driver for their damages if you have liability insurance.
Without liability protection, you’d be responsible for the damage you cause in auto accidents. The person responsible for an accident is the person responsible for paying the damages to the other party.
It Also Protects You
Vehicle liability insurance also protects you. While it compensates other drivers for their damages, it protects you against lawsuits and financial losses.
Imagine if you struck another vehicle because you failed to stop at a stop sign. If the other driver experienced injuries, you’d have to pay their medical bills out of your pocket if you didn’t have liability coverage.
If the person’s car had damages, you’d also have to pay the bill for that. Could you afford to pay all these bills? If not, you need to buy liability protection.
Your liability coverage protects you financially from incidents like this one. A person can’t sue you for damages if you have insurance coverage. They can sue you if you don’t, and you could lose everything you have.
Auto Liability Is Legally Required
The other thing to know is that most states have rules relating to auto insurance requirements. The main rule is that you must have liability coverage if you want to drive your car.
If you don’t have it, you can get a ticket for driving without it. As mentioned, you also risk financial ruin if you drive without out.
You might also need it for other purposes. For example, you might want to learn the requirements for car hauler insurance if this is something you do. You might also need it if you drive for a ride-sharing company.
While you might not need the best auto coverage that includes all kinds of coverage types, you should at least buy a plan that includes liability protection.
Get the Protection You Need Before You Drive
Hopefully, you understand the basic principles of auto liability insurance after reading this article. If so, you might know if this is the right type for your life.
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