When it comes to understanding your car insurance needs, it is important to comprehend terms such as liability auto insurance. Many people sign up for car insurance just to get the minimal amount of coverage in place so they have a policy. While this may prevent you from getting a traffic violation citation, it may not end up being what you need for your individual situation.

By not getting the insurance that you need or settling for less to save a few dollars, you can end up spending a lot more money down the road. If you ever have to cover your own repair or medical bills out of pocket due to an automobile accident, you will find yourself financially exhausted.

Some Things You Should Know about Liability Auto Insurance

To get a better idea of what this type of insurance is, here are some points you should be aware of:

• In most cases, liability auto insurance covers bodily injury and property damage.
• This type of auto insurance is required in every state to drive legally.
• The state determines what the minimum amount of required coverage is.
• Liability auto insurance covers you against damage or injury you may cause to another car or driver.
• Most drivers should have a greater amount of liability insurance coverage than they have.

What Does It All Mean?

First of all, liability insurance generally includes three main factors:

1. Bodily injury for each person

Bodily injury is the part of the liability auto insurance that covers injury you may cause to others during a car accident. This alone, without coverage, can add up to astronomical amounts of money that could devastate you financially should you have to pay for any of this out of your own pocket.

2. Bodily injury for each accident

The bodily injury part of the policy can include coverage for things including emergency roadside medical care, hospitalization, loss of income and, in severe incidents, the coverage of funeral expenses. This also helps cover any legal fees you may incur or bail bonds for you or anyone on the policy.

3. Property damage

Property damage is another issue that can add up to more money than you could possibly afford on your own. It can be something as simple as replacement cost for a mailbox, but only goes up from there. It covers the costs of repair or replacement of the other vehicle involved in the collision as well as damage to structures such as homes or businesses. Any damage to any sort of stationary object damaged or destroyed by an accident in which you are at fault would be covered, in most cases.

** Keep in mind: even having a great amount of coverage doesn’t matter, though, if you should break regulations specified in the policy. For instance, if you cause an accident due to illegal behavior, such as driving under the influence of drugs or alcohol, your policy may reserve the right to refuse liability.

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