Auto Insurance Liability Coverage for New Drivers

Newly-licensed drivers may not be sure how much auto insurance liability coverage they need or what kind to buy. In most states, laws have been passed requiring all vehicle owners to have liability insurance in place. This is the type of coverage which protects the policyholder from having to pay for damages he or she causes in an accident personally.

Liability coverage includes a bodily injury and a property damage component. Bodily injury liability coverage pays for medical bills and lost income incurred by the occupants of the other vehicle in an accident. Property damage coverage pays to repair the other driver’s vehicle. It also pays to repair or replace public property damaged or destroyed in the accident, including guard rails, sidewalks, light stands and sign posts.

A new driver will need to buy at least the amount of auto insurance liability coverage mandated by the state where he or she lives. When asking for quotes for coverage, the insurance company will provide pricing for a policy with at least this level of protection. It may be tempting for a newly-licensed driver to buy only the minimum amount of protection required by law, but this is probably not the best choice.

People who lack experience behind the wheel are more likely to be involved in an accident. A policy with a low limit may not provide enough protection to pay for damages when the accident is a serious one and buying a policy with a higher limit provides a better level of protection for new drivers.