All motorists must have a minimum auto insurance liability coverage according to law. Liability Insurance is the most popular of all insurance policies being the cheapest of options available. Auto insurance shoppers prefer to obtain liability insurance as it costs much less than full coverage. If you happen to be at fault in an accident while driving your vehicle it is highly probable that you could be held responsible for meeting all repair and medical costs of everyone who suffers damage, injury or death. Liability insurance takes care of loss incurred by others when your vehicle meets with an accident. The insurance company will pay costs of repairs and medical expenses you cause to of others
Full coverage auto insurance pays for both your vehicle and other vehicles involved in the accident in addition to covering medical expenses for treatment of injuries to you as well as others involved in the collision. This means that liability insurance is only responsible to pay for losses suffered by others when your vehicle is involved in an accident. Your person and property are not protected by liability insurance. By having liability insurance you can make sure that you are protected against the other party’s damages. The minimum amount of liability coverage required differs from state to state. This minimum coverage is often is not sufficient to cover the actual damages. If the costs exceed liability insurance amount, you must meet all the remaining expenses personally. So it is wise to increase your liability insurance coverage to avoid worrying about having to pay hefty amounts in case of an accident caused by you. It is also advisable to have some form of medical insurance that can cover your own medical expenses.
Liability insurance will pay for the emergency help at the accident such as first aid or Ambulance. It will also pay for the loss of income, lawsuit expenses (against you) for causing pain and suffering and funeral expenses if case of death of the others involved in the accident. Liability insurance will also pay for the legal expenses for you and those included in your policy and will also pay for bailing you out if you are arrested for causing the accident. It is therefore a good idea to purchase liability insurance for more than the minimum amount specified by the state. It is a smart way to protect your assets like real estate, stocks and savings from being targeted by the court if you end up being held responsible for a vehicle accident.
The minimum liability insurance coverage required by the state of California is often referred to as 15/30/5. This policy will cover expenses for physical injury of others at $15,000 per person, $30,000 in total for multiple parties involved in the accident and $5000 for any property damage. Talk to your agent to know the complete details of liability insurance to have the right amount of liability insurance coverage to ensure peace of mind.