Car insurance is required by law in just about every jurisdiction in the United States.
When it comes to auto insurance liability coverage is the absolute minimum you are allowed to carry.
Liability coverage protects the financial interests of the other parties involved if you are at fault in an accident.
It will cover the other party's property damage and medical bills if you are the one that caused the accident.
Liability coverage will not pay for any of your medical expenses or property damage if you are the one that caused an accident.
The law does not require you to protect yourself but it is in place to make sure other people are protected from the mistakes of others.
The minimum dollar amount of coverage you are required to carry will vary from one location to another so you will need to look into the requirements in your area when purchasing a policy.
It may be a good idea to get more coverage than the absolute minimum allowed by law in your area.
Even if you are not interested in a more comprehensive plan that would cover your vehicle and medical bills, getting a larger amount of liability coverage may be a good idea.
For example, let's say that the minimum amount of bodily injury coverage in your state is $25,000.
If you cause an accident that results in someone being seriously injured, that person's medical bills could easily exceed $25,000 and then you would be financially responsible for covering the rest of their medical expenses.
If you find yourself in a situation where you have to pay for someone's medical expenses out of your own pocket the results could be financially devastating so it may be a good idea to carry a little more coverage than the minimum requirement.
If you do decide to carry more auto insurance liability coverage than the absolute minimum allowed by law in your area it will obviously result in larger premium payments which is why many people avoid getting extra coverage.
There is a very easy way to get a lower rate on your car insurance however if you know where to look.
Whether you are getting the minimum amount allowed or getting a full comprehensive plan, the easiest way to make sure you are getting the lowest rate possible is to do some comparison shopping.
There are many companies competing for your business and with hundreds of companies to choose from it is very likely that you will be able to find a better deal than you are currently getting.
Spend a few minutes online to compare the prices of several insurance providers and you can easily find an opportunity to save a substantial amount of money.