Learn About Liability Car Insurance: What It Covers and How Much You Need

How do you define property damage?

Property damage insurance is another kind of liability protection. If an accident causes damage to another person’s property and you are found at fault, this insurance will pay for the repairs. It could also pay for the repairs to the vehicles of the other drivers involved.

Do all states mandate liability insurance? Can I get by with just liability coverage?

Liability insurance is a legal requirement in the majority of states. You are protected in the event of an accident regardless of where you are, home or elsewhere. Sometimes it’s possible to get liability insurance only, but it’s important to talk to an insurance agent about the potential financial consequences of doing so.

How much liability insurance should I get?

Keep in mind that liability insurance is required by law in the vast majority of the states in the United States. However, the minimum amount drivers are required to carry from state to state.

In the event of an accident in which you are found at fault, and the total cost of damages and medical expenses exceeds your chosen coverage limits, you will be liable for paying the difference out of pocket.

Choosing the appropriate insurance is crucial to safeguarding your financial well-being. It’s a good idea to have additional liability insurance than what’s required by law. Having sufficient liability coverage to safeguard assets in the event of a major accident is generally advised.

Yet, if your wealth exceeds $500,000, an umbrella policy, also known as excess liability insurance, may be worthwhile. Because every driver’s requirement and situation are unique, it’s important to discuss your options with a licensed insurance professional.

In spite of the higher premiums, full coverage is the safest option. In most cases, this policy will pay for repairs to your car and any medical expenses you incur as a result of an accident.