Car liability insurance - A Quick Explanation Of Exactly What It Is And Why You Might Need It

If you are looking for information about car liability insurance this article will explain exactly what it is and why it is important. If you're wondering why you may need it the answer is an easy one, because it's the minimum amount of auto insurance required by law in most states.

The reason that car liability insurance is the bare minimum amount of coverage you are requited to have is because it protects the other drivers on the road if you were at fault in a wreck. With liability coverage, your insurance company assumes financial responsibility for damages caused to any other vehicles and/or medical bills of any injured parties in a wreck where you are at fault. With this type of coverage, damage to your car and any injuries you sustained would not be paid for by your insurance company.

Car liability insurance is not only the minimum amount that you must carry it is also the least expensive option available. However if you drive a newer vehicle it's probably a good idea to have a more comprehensive car insurance plan. In fact if you needed borrow money to buy your car it's very likely that your lender requires you to have quite a bit more coverage for your vehicle in order for them to make the loan.

If you drive an older car or a car that simply isn't worth very much, then it doesn't really make sense to have full coverage. If a year or two of premium payments would be enough to purchase your car outright then you'll probably want to go with the lowest amount of coverage allowed. In addition to going with the cheapest option you can also get auto insurance quotes from a number of different companies to make sure you're getting the best possible price for your coverage. Shopping around can save you a lot of money.

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