Liability Coverage

Liability coverage is the basis for auto insurance coverage. Almost all states require a minimum of liability coverage.

If the accident is your fault, the liability insurance would cover the property damage and bodily injury expenses you inflict on others. This would include your legal bills that result from such an accident. The injury coverage would pay for such things as : lost pay and medical bills. The damage coverage would pay for repair of items damaged by you (not including your own car).

Forty-five states require the purchase auto liability insurance (Wisconsin, South Carolina, Viginia, Tennessee, and New Hampshire don't mandate liability coverage), so your insurance requirments will depend on where you live.

Sometimes you may cause an accident where your minimum coverage may not cover the damage/injury. If you can afford it, you should consider buying more than the bare minimum. In most states, the at fault party may be sued by the other driver.

Related Article: Comp and Collision >>