Since liability insurance is required in 49 states, many questions arise about it and what it covers. Below are some of the most frequently asked questions about liability insurance.
Does liability insurance cover theft?
No, responsibility does not cover theft. Comprehensive insurance will protect your vehicle if someone steals it or breaks into it and damages it in the process. The comprehensive also covers weather-related damage and vandalism.
Can you get liability-only insurance on a financed or leased car?
Most financial firms will not let you go with a car that is only covered by liability insurance. If you have a loan on a vehicle or rent a vehicle, the financing company provides you with a loan with the cost of the car as collateral. If you only get liability insurance and total cars, it's suddenly worth a lot less than the amount they lent you, and they have no way to recover the money. The same goes for the vehicle you rent. Collisions and comprehensive coverage protect the investment of financing companies.
Does liability insurance cover my car if I am at fault?
If you have an accident and someone else is obviously at fault, their liability insurance will have to cover the damage to your car. If you were injured in the accident, someone else's liability insurance should cover it as well. If you are in a state of faultless insurance, each insurance company covers the medical bills of their individual clients.
Does liability insurance cover weather-related damage?
Liability insurance only covers others in the accident you caused. It doesn't cover the damage to your car if it's damaged by hail or swept away by flooding. Comprehensive insurance covers damage to your car when it's not moving: anything from vandalism to weather to theft.
Unless you can cover a catastrophic car accident with the money you have, the best way to protect yourself from being sued for a car accident determined to be your fault is to buy liability insurance. Even the amount required by law may not be enough to protect yourself, but by shopping and talking to your insurance agent, you can find an auto insurance policy that meets your needs and gives you peace of mind.
