Mandatory Liability Auto Insurance
What is Liability Car Insurance and Why is it Necessary?
Nov 7, 2009
Although there are some types of optional car insurance coverages, such as comprehensive insurance and collision insurance, liability insurance is mandatory. This type of coverage does not pay for repairs to the at-fault driver's vehicle in an accident, but rather it pays for repairs, damages, and injuries to the other car and driver.
What is Liability Car Insurance and Why is It Necessary?
According to Insure.com, mandatory liability auto insurance is a type of coverage required by all drivers in all states. This type of coverage pays for damages to the other car and driver, and it pays legal bills regarding accidents caused by the owner. This type of insurance is necessary because if someone were to cause an accident without having liability auto insurance, if the at-fault driver could not pay out of pocket for damages and injuries to the other car and driver, then no one would be able to do so. That is why this coverage is necessary, so that the at-fault driver's insurance will cover damages to the other party.
What Exactly does Liability Auto Insurance Cover?
This coverage is not at all concerned with repairs to the car of the at-fault party. In car collisions, there are two different types of coverage that can handle all repairs. Liability car insurance covers damage to the innocent party, and optional collision coverage repairs the at-fault driver's vehicle and property. If one car runs into another, and cause an injury to the unsuspecting driver of the innocent party, liability coverage held by the at-fault driver pays for all damages to the car and person of the other.
Types of Liability Car Insurance
There are necessary minimums for all types of liability coverage. The two types of this coverage are bodily-injury liability coverage, which pays for medical bills and relating costs of the other driver. There is also property-damage liability car insurance which covers damages to others' vehicles and properties that an at-fault driver might damage. However, when people only buy the minimum amounts of required coverage, they may have a financial obligation even with this mandatory insurance. For instance, if someone has up to $80,000 dollars worth of liability auto insurance, if damages to another vehicle or person end up costing more than this, the guilty driver will have to pay for the difference.
Liability car insurance pays only for damages to other cars and drivers. For repairs to the car and driver of the guilty party, collision coverage is necessary. Liability auto insurance coverage is necessary in all states because drivers who have it will be able to afford damages to the persons and properties of others when they cause any accident. The innocent party is never expected to pay for damages sustained in a collision.
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