What You Should Know About Auto Liability Insurance

While not all states require their drivers to ownIt is a good idea to purchase enough auto liability
auto insurance, most of them do. Those that doinsurance to cover any lawsuit that could
not, require the motorist to have assets enoughpotentially come your way or to cover the
to cover the cost of a collision of which they aredamages your vehicle might do to another
responsible. If that is not possible or if your stateperson, vehicle or object. Although most states
is one that does require all vehicles to be insured,mandate the minimum amount of coverage you
then we would like you to consider auto liabilitymust purchase, it is a good idea to purchase
insurance. Below is a compilation of frequentlymore since it very well may not be enough.
asked questions.3. What Is "No-Fault" Insurance?
FAQs Regarding Auto Liability Insurance:If your state requires "no-fault" insurance then
1. What Exactly Is Auto Liability Insurance?you must pay for any medical expenses suffered
This coverage is broken up into two areas. Weby you and/or your passengers regardless of
will discuss them separately.who was responsible for the collision. No-fault
Bodily Injury Liability covers the bodily injuries orinsurance laws are intended to keep insurance
death suffered by other people in a collision forfraud at a minimum.
which you are responsible. These claims may4. What Can Happen If My Auto Liability Insurance
involve such things as medical bills, loss of wagesCoverage Is Too Low?
or pain and suffering. Bodily injury liability alsoYou could be putting yourself in financial risk. If
provides for legal defense should another party inyou or someone on your policy cause an accident
the accident file a lawsuit against you. It does notwith severe damages that exceed your limits,
cover you or others on your policy.you will be held personally responsible for for the
Property Damage Liability covers you if yourextra damages.
vehicle causes damage to another party's5. What Is My Premium Paying For?
property. Most often this is a vehicle, but it alsoAuto liability insurance pays for accidental bodily
includes fencing, landscaping, house or otherinjury and property damages to another party.
structure. It also provides you with legal counselInjury damages include medical expenses, lost
should a lawsuit be filed against you by anotherincome and pain and suffering. Property damage
party.includes damage to property. This coverage also
2. How Much Coverage Do I Need?pays attorney fees and court costs.