Most states in the US mandate that anyone who drives a vehicle on public roads and highways maintain liability insurance. The amount of liability required will vary from state to state. Liability insurance provides protection against costs associated with damage to property and injury to another person in a vehicle accident where you are found to be at-fault. You are basically financially covered by the insurance company for bodily injury to another person and property damage such as damage to another person's vehicle.

If you purchase the minimum liability coverage mandated by your state, there is a good chance the amount is too low to provide complete financial protection in the event of an accident where you are deemed at-fault. When you look at your policy, you will normally see certain numbers that indicate your type of liability coverage. For instance, you may see 50/100/25. These numbers indicate your type of liability coverage which is divided into three different totals. For 50/100/25, the numbers mean the following - coverage up to $50, 000 for bodily injury for an individual, coverage up to $100,000 for bodily injury costs on all passengers in a vehicle, and coverage up to $25,000 for property damage costs. This example shows that the costs are pretty low compared to damages that can be sustained in the event of an accident. Most insurance experts recommend a $1,000,000 liability policy for complete financial protection.

It is important to know that liability-only does not protect against such damage as: vandalism, theft, and natural disaster such as wind damage. It also does not provided coverage if you are in a collision and your car is damaged or totaled. Liability-only will not provide enough protection which is why most drivers will choose other types of coverage such as comprehensive insurance. Having full coverage will not only provide financial protection for the various costs associated with a vehicle accident, but it will ensure your legal costs are covered if you are sued.

When you drive your vehicle, you do not intend to get in an accident, however, every year people all over the country are involved in serious accidents resulting in enormous costs. Therefore, it is essential that you make sure you have enough insurance so that you do not end up losing everything you have worded hard to earn. When you do not have sufficient insurance it can have an overwhelming impact on your life when a serious vehicle accident occurs. It is essential to determine how much insurance you will need. If you are worried about monthly premiums, you can easily and quickly find and compare cheap auto insurance quotes online.

It may seem like you are getting a great deal if you just purchase liability-only, however, the costs of an accident can be a financial disaster if you have to pay-out-of pocket. When you purchase enough liability as well as insurance that protects against other vehicle mishaps, you will have peace of mind knowing your finances and future assets are protected.