You likely have to buy car insurance, and one of the types of coverage you often have a requirement for is liability insurance. What is this coverage? Why do you have to buy it? How can you use it to your advantage?image of auto policy

Understanding Liability Insurance

In a legal sense, a liability is the state of being responsible for something. So, when you get behind the wheel to drive, what are you responsible for?

Because roads are not only busy, but also dangerous (regardless of where you go), then you have a chance of causing an accident, no matter how safely you try to drive. And, if you cause a wreck, you might be responsible for not only the damage, but also for the recovery costs.

Liability insurance, therefore, is the type of car insurance that can help you in these cases. Sometimes called at-fault auto insurance, liability coverage help you pay not for the damage you cause yourself, but to other parties.

So, maybe you run a red light and hit another car. Because you ran the light, the authorities might name you as at-fault for the wreck. The other driver might therefore have a right to file a claim against your liability insurance. Coverage will help them pay for their own losses.

Most states require various types of auto liability insurance because of how it benefits both the policyholder and others on the road. In Florida, you must carry at least $10,000 property damage liability insurance. With coverage, you can compensate another driver for their vehicle damage if you hit them, for example. You can also buy bodily injury liability insurance to compensate others for their injury costs.

The Benefits of Its Coverage

Consider just a few of the ways that auto liability insurance can help both you and those affected by your mistakes.

  • Third parties won’t suffer significant losses because of an accident you caused. They also won’t have to make a claim on their own insurance trying to afford the recovery costs.
  • By being able to file against your liability insurance, the affected party might decide not to sue you for their losses. Coverage doesn’t eliminate the risk of lawsuits, but it can greatly reduce the chances. Therefore, you might feel much more security knowing you’ll have help available in case accidents occur.
  • If you can use your insurance to compensate others, you might not have to dig into their own pockets. That’s a benefit to the policyholder’s solvency.

Beyond Florida’s required coverage, you can increase your liability limits to provide you with more help if a worst-case scenario arises. We’re here to see to it that you get the perfect policy.

Also Read: Does My Auto Policy Cover Me When I Rent a Car?

Posted 3:11 PM

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