Liability insurance coverage protects you financially if you're responsible for someone else's injuries or property damage. Liability coverage comes standard with most vehicle and property insurance policies, including auto and homeowners insurance. For car insurance, you might see this coverage called auto liability coverage. In the case of property insurance, this is generally referred to as personal liability coverage.
Property damage (to the car or surrounding property) is often the most common result of a single car accident, such as hitting a telephone pole or hitting a handrail. That's why it's also important to know how much car insurance you need, so as not to jeopardize your personal assets in the event of an accident. If the damage is considered unavoidable and unexpected, comprehensive auto insurance coverage applies. Liability is mandatory auto insurance coverage in 49 states, while comprehensive and collision coverage are optional if the car is paid for.
By requiring specific liability insurance for victims of an accident caused by you, they can receive financial help for injuries and property damage without seriously affecting their own financial well-being. The medical payment coverage in your auto insurance policy will cover your co-worker's hospital bill up to the limits of your policy. Many individual car accidents are considered at fault, so your insurance company may increase your rate after the policy is renewed if you decide to file a claim. This information is not an insurance policy, does not refer to any specific insurance policy, and does not modify any provision, limitation, or exclusion that is expressly stated in any insurance policy.
And, in general, you should have the same amount of liability coverage in your motorcycle and motorhome insurance policy as in your car insurance policy. If the damage to your car is significant or exceeds the cost of your deductible, it may make sense to file a car insurance claim with your insurer. If the damage is minimal and the repairs will cost less than your car insurance deductible, it may not make sense to file a claim. However, drivers who choose not to purchase auto insurance must show that they have sufficient funds to meet the state's financial responsibility requirements (PDF) in the event that they cause an accident.
This type of car insurance coverage also applies if you or your family members are traveling as passengers in other vehicles or are hit by a car while walking or biking. The main reason why car insurance is mandatory in almost every state is because of your personal liability (liability) if you cause an accident. Regardless of whether you decide to file a single vehicle accident insurance claim, it is recommended that you notify your insurer of the accident immediately after it occurs.