Why Do You Need Automobile Liability Insurance?

This question comes up quite a lot in conversation. “Why do I have to have liability insurance for my car?”. Well the simple fact of the matter is, liability insurance owns up to your ability to pay for any accident or injury that may transpire while you are operating a motor vehicle. This is required by the state in which you may be living. This is something that has to be done in order to not only protect you, but to be able to better protect others. There are limits and exclusions to everything as you well know.

The state in which you may live has a basic minimum liability coverage for both driver, passenger and accidental death. These can start out as low as 5,000 and can start as high as 20,000 for personal injury or death for one accident. The property damage can also be about 5,000 to over 30,000 deductible for property for one accident and accidental death can start at 5,000 and go up from there. This is all dependent upon the state that you are living in and the laws therein. This is the limit that your insurance policy will pay for accident, property damage and death per accident.

This type of liability insurance is REQUIRED by law in order for you to operate a motor vehicle. If you are caught without this type of insurance, you will be assured of losing your license for at least a year, plus have to pay fines for operating an improperly insured vehicle. This is up to and including if there is an accident while you are not covered. There could be other penalties such as impounding of the car until proof of insurance is obtained. So you can see what you would be paying out for not complying with the law.