One of the first terms you’ll encounter when shopping for an automobile insurance policy is “liability”. There are different kinds of liability policies available, and nearly always you have to have liability insurance in order to legally drive. What liability refers to is who’s the blame for an accident. If you’re the one who ran into the car in front of you, then you’re liable. Legally, you can be held responsible for all expenses incurred to that man and his car as a result of your act. You buy liability insurance specifically to protect yourself in this case. Under the terms of your policy, your insurance company will pay those expenses which you would otherwise be liable for. If you don’t buy enough liability insurance so that the man’s medical expenses exceed that of the policy limit, then you could find yourself personally responsible to pay the remainder.
There are two basic kinds of liability in auto insurance: bodily and property. Property liability covers not only damage to another person’s vehicle, but to his house, fence, store, etc. There again you should be careful to purchase enough liability to cover yourself from high expenses. You want to be able to protect your own financial assets from a lawsuit resulting from an accident. Be sure to read the terms and conditions of your policy before you sign it, so that you are confident that you have sufficient coverage.
In theory, any time you get hit by another person’s vehicle, his or her liability insurance will pay your expenses. However, sometimes people drive without insurance, even though it’s not legal to do so, or they may not have enough insurance to cover your costs. Rather than dealing with the legalities of trying to sue for damages, you can purchase automobile insurance that is specifically to cover such a contingency.
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