Auto liability insurance is a critical aspect of responsible vehicle ownership. This standard feature of auto insurance policies can provide financial protection in the event of an accident and is a legal requirement in many jurisdictions.

What Is Auto Liability Insurance?

Auto liability insurance is a type of car insurance coverage that may cover the costs associated with injuries or property damage for which you are at fault. It’s typically divided into the following two categories:

• Bodily injury liability may cover medical expenses, legal fees and other losses if you’re at fault in an accident that injures another person.
• Property damage liability may pay for repairs to another person’s vehicle or property if you cause an accident.
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How Much Auto Liability Insurance Do I Need?

Determining the amount of auto liability insurance you need generally depends on several factors. First, consider the minimum coverage requirements in your state. Every state has different laws regarding minimum liability coverage. However, even when complying with these requirements, you may require more coverage to cover the costs of an accident fully.

You should also consider your personal financial situation. If you have significant assets, you may want to carry more liability insurance to protect those assets financially in case of a lawsuit. A good rule of thumb is to have enough liability insurance to cover your total net worth.

When Should I Get Liability-only Car Insurance?

Choosing liability-only car insurance can be a cost-saving measure, but it may not be advisable for everyone. This type of auto insurance policy may be suitable for older vehicles that have depreciated significantly in value. Policyholders should be mindful that liability-only insurance does not cover damages to your vehicle in an accident where you’re at fault. It also won’t cover theft or damage from natural disasters. Therefore, full coverage auto insurance might be a better option if you rely heavily on your vehicle or live in an area prone to severe weather or high crime rates.

Learn More

At Nor Cal Pacific, we are ideally placed to help motorists in the Redding, California, area understand and secure suitable and affordable liability auto insurance. Contact us today to get started.