What To Look For When Buying Insurance For Your Car

Posted on: 16 March 2023


Car insurance is one of those things that is essential when you are operating your car or truck on public roads. General liability insurance covers many things that can happen when driving and is required by most states for any vehicle. Still, the coverage amounts can vary from one state to the next. 

Liability Insurance

In many states, you must have general liability insurance on your car before registering it. There are some states that allow you to register but still require insurance coverage and verify it if police officers stop you.

Liability coverage only applies to things you damage with your vehicle, so if you get in an accident, the insurance will not fix your car unless you have comprehensive coverage. General liability insurance policies protect other drivers from damage caused by someone else's carelessness or in the event of an accident that was beyond their control. 

The amount of coverage you must carry varies in each state, but most states have similar coverage requirements. Check with the DMV or your insurance company to determine the minimum coverage in your area. 

Insurance Premiums

Older cars are often not worth carrying comprehensive coverage on, but general liability insurance is necessary. The insurance cost is often reasonable unless you have a history of accidents and collisions, and often people will only buy liability insurance to lower their premiums. 

While the car could be a total loss with a minor collision, the financial obligation after an accident can cost you a lot if you don't have any insurance. If you have the minimum coverage for your car, you will have some protection against lawsuits because of the damage you caused during the crash. 

If your accident is deemed a no-fault accident by police, it does not mean you don't need insurance. You will still need to pay part of the damage to the other driver's car most of the time, and they may have to cover yours. Each state is different in how they assign responsibility, and your insurance agent can help you understand what you are responsible for if you are unsure.

Insurance Requirements

In many states, if you are stopped and do not have at least general liability insurance on your vehicle, the police can impound the car and cite you for driving without insurance. You will have to get insurance and show proof of insurance before you can get your car out of impound and pay fees for every day they store the car for you. 

The costs can add up quickly, and in most cases, paying for the insurance is less expensive than the fines, fees, and citation that comes with the violation. For more information on general liability insurance, contact a professional near you.