Things To Understand About Liability Auto Insurance

Car insurance might seem like a simple product to buy, but it's not. Car insurance comes in many types, and buying a plan requires numerous decisions. However, liability insurance is one type of coverage every driver needs. In fact, it's a legal requirement in most states. If you're new to car insurance, you might have questions about liability coverage. Here are some things to know about it as you buy a car insurance policy.

The basic purpose of liability insurance 

First, it's important to know the basic purpose of liability insurance. Liability insurance protects you, but not in the way you might think. It primarily protects you against lawsuits and financial devastation. This is because the only thing it covers is other people's vehicles and damages. It kicks in only when you cause a car accident involving one or more cars or people.

When you do something that causes damage to others, they can file a claim against your liability coverage. This coverage pays to repair their vehicles, but it also pays for medical bills, lost wages, and other things. If you didn't have liability insurance, people could sue you personally for the damages. Thus, you need liability insurance if you plan on driving a car.

The amount you need

Purchasing liability auto insurance comes in two parts. The first part is bodily injury liability. Bodily injury is the part that covers physical damages. For example, a person might suffer from back pain, a concussion, or broken bones from an accident. Your liability bodily injury protection covers that. As a result, you should choose a policy that offers more per person. Of course, you can choose more or less, but this amount is typically enough.

The second part is property damage liability. This part of the coverage pays for damages to the person's car or other assets. 

Why you need liability coverage

As you can see, having liability coverage is necessary. In addition, it's a requirement. If you ever cause an accident without it, you could be ruined financially. The person could sue you for your personal assets, leaving you with nothing except a large debt. Thus, you should choose a policy with this coverage.

Talk to a car insurance agent

Of course, you might need other coverage options for your plan.

To find out more about nationwide car insurance coverage, reach out to an insurance agency near you today.