The Truth About Auto Liability Insurance

Automobile insurance is now required in one form or another in every one of the 50 states that make up the United States of America. At the very least, the laws of every state requires that individuals who operate motor vehicles must have auto liability insurance.

Insurance is a contract between an insurance company and the individual. It provides the insured with financial protection in the event of any mishaps or unforeseen occurrences. For this protection the insurance company is paid what is known as a premium. When only liability insurance is required by law for coverage then that usually means that your premiums will be pretty affordable.

Auto liability insurance covers both bodily injury and property damage. The bodily injury portion of the insurance protects the insured against claims filed against them where a person or persons have been injured or killed while the insured was operating the motor vehicle.

Coverage for bodily injury is mandatory in some states, but not all. It is however, a good idea to have it. If you get sued for causing injury or harm to another and are found liable for it, you stand to lose a substantial amount of money that could ruin you financially.

Property damage coverage takes care of any claims made against the insured where property is damaged as a result of an accident. Property in this case, refers to not only the other party’s vehicle but also to such things as buildings, poles, fences and just about any other physical piece of property you can think of.

Please bear in mind that you must check with the laws that apply to your state to see what type of policy is required. Some states require more comprehensive coverage than others. And of course, the more coverage that is required, the more expensive it will be.

Having basic auto liability insurance and nothing more is a financial risk and that must be understood by the insured. The coverage is very basic and while it may fit under the umbrella of meeting your states legal liability, in many cases it fails to offer the comprehensive coverage that is necessary to protect you financially.

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