The two types of liability car insurance are property damage and bodily injury.
These are both required for every driver in most states.
Property Damage Liability Insurance, the type of auto liability insurance we will be discussing here, is basically insurance that will cover damage that you may cause to someone else's car or other property when you are found at fault.
Your property damage liability will also cover other drivers of your
vehicle, as long as you give them permission, of course, to drive your
car. No sense covering the carjackers! =-)
Like bodily injury liability, this coverage will also pay for your legal fees, etc., in the event that you are filed against.
The law varies from state to state, but all states have a minimum requirement for vehicle owners in regards to liability insurance.
Be sure to check with your own state insurance department to get the particulars for your state.
You may want to consider getting more than the bare minimum
(I understand, I'm always pinching pennies myself) in case you hit a luxury automobile. The cost of repairs for a vehicle like that can be exorbitant.
Don't forget about allowing for medical expenses others may suffer as a result of an accident when you've been found to be at fault. They can run even much more pricey than replacing a vehicle depending on the severity of the injuries.
A good recommendation is about $300,000 per accident. I know that seems crazy, but between the repairs to the vehicle, medical expenses, pain and suffering, loss of wages, and other damages that may be awarded, you could really mount up a hill of debt.
Unfortunately, your insurer will only be required to pay for the amount of your policy, and you'll be stuck footing the rest of the bill.
It is a bit galling to have to pay for "what if's," especially if you have been driving for years without an accident. However, all it takes is one split second and you could lose a lifetime's worth of assets. That's the way the system works.
It's best to just be prepared. If you are trying to cut your costs, there are ways to save and get better rates.