Auto insurance liability coverage is a legal requirement in most parts of the United States. State lawmakers determine the minimum level of this type of insurance that drivers must buy to stay legal.
Liability insurance is put in place to cover the driver if he or she is involved in an at-fault accident. The insurance pays for injuries incurred by the occupants of the other vehicle. It also pays out a funeral benefit if the accident is a fatal one.
Liability insurance also includes a property damage component. It pays for repairs to the other driver’s vehicle following an accident. Damage to public property is also covered under this part of the driver’s insurance policy.
If the driver lives in a tort state for car insurance purposes, injured people have the right to sue to collect damages from the at-fault driver in an accident. In a situation where the driver’s auto insurance liability coverage is not high enough to pay for the damages he or she caused, the driver will be expected to make up the difference personally.
Before buying an auto insurance liability policy, a driver should find out how much protection is required by law in his or her state. The next step is to consider whether he or she is comfortable with buying a policy with a higher coverage limit. This is a very personal choice but ideally a driver will buy as much auto insurance liability coverage that he or she can afford.