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Read More Auto Articles

• What Is Liability Insurance?
• What Are Collision and Comprehensive Insurance?
• What Are Medical Payments Coverage and Personal Injury Protection Insurance?
• What Is Uninsured / Underinsured Motorist Protection?
Driving is a privilege, but it comes with a price tag. There's the cost of the vehicle itself, maintenance, repairs, fuel and auto insurance. Many states require you to carry a basic, minimum level of auto insurance. Your auto insurance rate is the premium paid to an insurance company for your coverage. In return, your coverage will protect you against most financial losses that might otherwise be your responsibility to pay.

Auto insurance is more than a matter of insuring your vehicle for loss or repairs after an accident. It is a financial safety net that can help you offset the cost of:

• Bodily injuries to yourself or others
• Lost wages due to injury
• Benefits to survivors when an accident results in death
• Lawsuits brought against you as the result of an accident
• Repairs made to your car due to damage caused in an accident.

What Is Liability Insurance?

Liability insurance helps protect you and your assets if you cause an injury to others or damage the property of others with your vehicle. Bodily injury liability protects you in the event you are determined to be responsible for an accident in which someone is hurt or killed. Property damage liability covers the damage your vehicle causes to someone else's property, such as their car, mailbox or a fence on their land.

If you are judged to be legally liable for an accident, you may be held responsible for property damage, hospital and medical payments, rehabilitative care, lost income and even the pain and suffering of the injured person. You can be sued for the full cost of the damages. If the cost of this loss exceeds the amount of your liability insurance coverage, you may have to pay the rest. So, be sure you have sufficient liability coverage to protect your assets.