One of the most important parts of any good car insurance policy is liability car insurance. Let’s discuss this further so you can better understand why this is such an essential part of an auto policy.
Basically liability car insurance pays for the bodily injury and property damage your vehicle may inflict on the other parties involved in an accident. Keep in mind that this coverage does not pay for damage to your own vehicle.
And if you are sued as a result of an at fault accident, liability coverage provides legal counsel services.
It is important to realize that if you cause an accident, you can be held legally and financially responsible for damages inflicted on people or property. So the people involved in this accident have the right to file suit against you to recover damages which might have arisen as a result of this accident.
But liability auto insurance has the ability to reimburse the other parties involved for their medical expenses, repair costs to their vehicles, and money based on loss of income or pain and suffering.
The amount paid out is highly dependent on the circumstances as well as the coverage limits selected for this type of insurance. It is therefore very important to make certain you are adequately covered against loss.
Liability coverage limits can range from a low of $10K per incident up to $1M or more. Consult with your insurance agent who can help you to make the right decision concerning coverage limits. You may want them as low as possible in order to keep the cost down.
However if you choose coverage limits which are too low, then you open up the possibility of having to pay a portion of the damages resulting from an at fault accident directly out of pocket. So choose carefully.
If you have inadequate coverage, you could be held liable for the difference. If you do not have adequate financial resources, you could be sued and any assets held or taken away to cover these losses. So you could end up losing property like your home if you are not careful. And keep in mind that if you have adequate liability coverage, you will also receive proper legal assistance and counsel to help you come to the best possible resolution of a case.
So keep in mind that liability car insurance is a very important part of any car insurance policy. Just make certain that you are adequately covered against unexpected loss and damage arising from an at fault accident.