Understanding Auto Insurance Claims

Auto insurance does come at a cost, and you're not alone if you're looking for ways to keep insurance costs down. Trimming back your coverage to the essentials can be a reasonable approach in some cases. However, there is one particular type of insurance coverage you should never get rid of: auto liability coverage. Why is auto liability coverage so vitally important? Take a look.

It covers damages if you cause a collision.

Every driver hopes that they never cause a crash. Taking safe driving courses and paying keep attention to the road will go a long way towards reducing your risk of an accident. However, you can never fully predict what will happen. That's why crashes are called auto accidents — they are not on purpose, and sometimes they're impossible to avoid. If you do cause a crash, you will likely cause damage to someone else's car or property. The amount of damage can be substantial. Imagine totaling someone's brand new, $50,000 car. Coming up with the money to pay for the damage out of your own pocket may be difficult or impossible. But if you have auto liability coverage, your insurance will pay for the damage. This gives you peace of mind, and it also protects you financially.

It covers others' medical bills.

It's hard to predict how serious injuries due to a car accident may be. Even a low-speed crash can cause serious head trauma or broken limbs. Medical costs climb quickly. There will be doctor's bills, fees for medication, and lost wages to consider. If more than one person is injured in the crash, then medical costs will be even higher overall. Liability coverage, thankfully, will pay for any medical bills if you cause an accident that injures someone else. It also pays for any injuries to your passengers.

It's probably required in your state.

All 50 states require property damage liability. And all states except Florida require bodily injury liability. So, if you do not purchase this coverage and you drive, you will technically be breaking the law. You could be ticketed and fined. These laws exist for a reason — to protect drivers — so it is important to follow them.

Everyone has somewhat different needs when it comes to auto insurance, but one thing you never want to skimp on is liability coverage. Talk to your auto insurance representative to learn more about this and other types of insurance. For more information, contact a company like Advance Insurance.