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Why Auto Liability Insurance Is Not Enough

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Buying liability insurance is required by law and the failure to maintain insurance can have devastating legal consequences. However, while you can meet the bare minimum required for auto insurance coverage, it's important to purchase more insurance so you will have peace of mind.

Don't Purchase Too Little Insurance

You can save money by purchasing less insurance, but this might backfire. A car accident can be very expensive, and your coverage will only pay for the damages you are liable for up to the policy limit. And this is only taking liability insurance into consideration.


The purpose of liability insurance is to pay for damages for which you are responsible. If you are involved in a car accident, the other party will be able to file a claim with your auto insurance provider.

After the accident, rather than paying for the damage done to your own car yourself, you could have your auto insurance provider pay for them. This requires that you carry collision coverage and comprehensive coverage. 


Comprehensive coverage pays for damage done to your car if something happens to it that is beyond your control. For example, if there is a natural disaster or if your car is stolen, it would be covered under comprehensive insurance.

Collision Coverage

Collision coverage, on the other hand, covers incidents where your vehicle becomes damaged while you are on the road. For example, if you were in a car accident and you were at fault, you may file a claim and receive compensation up to the policy limit.


You will also need to make sure that you have medical coverage. If you are injured during the accident, your auto insurance provider will pay for all of your medical expenses.

If you are not sure whether you were at fault for the accident or not, you will still want to file a claim with your insurance provider so you can be compensated. Then, your insurance provider will be reimbursed if it is later discovered that the other party was at fault.

Uninsured Motorist

Finally, you will want to make sure that you have uninsured motorist coverage. Unfortunately, some drivers choose to drive without insurance. You have the choice of suing the driver for your damages, but they might not have many assets.

Your insurance provider will cover you under this policy. When you have enough insurance, you can have peace of mind knowing that you will be reimbursed when something goes wrong.

If you have additional questions about auto insurance coverage, contact an insurance agent.