Most parts of the United States have set a minimum level of auto insurance liability coverage for drivers. Insurance companies must provide quotes reflecting at least this level of protection to potential policyholders.
Liability insurance coverage is put in place to shield the policyholder from having to pay for damages caused in an at-fault accident personally. It includes bodily injury coverage, which pays for personal injuries and related expenses incurred by the occupants of the other vehicle in an at-fault accident. Property damage liability protection pays for repairs to the other vehicle, as well as other property damaged or destroyed in the accident.
Drivers can choose to buy a basic policy which complies with the minimum level of coverage required to stay legal in their state if they wish. The problem they may run into by choosing this course of action is that a policy which has a limited level of protection may not be high enough to protect the driver if the accident is a serious one which causes severe and long-lasting injuries.
A car insurance consumer can choose to buy a policy with a higher level of coverage than the minimum required under state law if he or she chooses. This is a good idea, since minimum auto insurance liability levels tend to be relatively low and the cost of medical care to treat injuries sustained in an accident will only continue to rise over time.