Getting car insurance is a necessity if you own a car and plan on driving it, and there are a lot of different types of coverages you should have on your policy. One of the most common types of coverages is called liability car insurance. This type of car insurance coverage is required for all drivers, and here are several things you should know about it.
The Basics of Liability Coverage
Liability coverage is something that most states require drivers to have for their cars, and it is a type of insurance that is designed to cover damages to other people when a person causes an accident. For example, if you fail to stop at a stop sign and end up colliding with another vehicle, your insurance policy would be responsible for paying the damages to the other party involved because you caused the accident.
When this happens, it is your liability coverage that kicks in and pays the damages to the other party. Liability coverage does not provide you with coverage for your vehicle if you cause an accident or are in an accident caused by another driver. Liability coverage is strictly designed for situations in which the other party involved has the right to collect money from you after an accident occurs.
The Reasons You Need Liability Coverage
There are several reasons you need liability coverage on your car insurance policy, and the first reason is that it is a requirement by most states. If your state requires that you have car insurance, it will be liability coverage that is required. If you drive without having at least the minimum amount of car insurance coverage your state requires, you could end up with a lot of problems.
The second reason you need this is to protect your own assets. If you do not have liability coverage and cause an accident, the other party involved can sue you. If you own anything, such as a house or car, or if you have money in the bank, you could lose all of these things in the lawsuit. If you had insurance, this would not happen, because your insurance policy would pay the damages.
Liability coverage is very affordable to purchase, and it is a necessity for all drivers. If you currently do not have insurance coverage but want to get it, you should contact an auto insurance company to request a free quote.