Before choosing which auto insurance is required by law for you, it’s helpful to understand what liability insurance is. Liability insurance pays compensation to the other party involved in an auto accident. This may include pedestrians or the owner of the property where the accident took place. Liability coverage does not cover the driver or passengers’ injuries. In some states, liability insurance is optional. This coverage is a good choice for drivers who are concerned about the costs of a serious accident.
In addition to liability insurance, comprehensive coverage pays for damage resulting from virtually any other cause. Comprehensive insurance does not require mandatory coverage. Those who do not have this type of insurance should choose another type. It’s best to choose comprehensive coverage in case of an accident. Comprehensive coverage also protects you from other costs, including medical bills. Although comprehensive coverage is not required by law, it can protect you financially in the event of an accident.
While most states require car insurance, many are voluntary. While liability insurance is required by law, it is also important to understand that some states allow for more comprehensive coverage. For example, most states require bodily injury and property damage coverage. These two policies will pay if you cause bodily or material harm to another person or property. Further, if you cause the accident, these insurance policies will pay for the damages and medical expenses.