When you are shopping for car insurance for the first time, you may be confused about the many different options out there, and understandably so. Auto insurance companies are continually adding new coverage policies to their offerings, which can be overwhelming to the first-time insurance shopper.
The most basic form of auto insurance is liability insurance. With this coverage, drivers protect themselves from having to pay for other drivers' auto repairs and medical expenses when they are found to be at-fault in automobile accidents. This can save at-fault drivers thousands of dollars out-of-pocket.
Since repairs and medical expenses often do range in the thousands of dollars, and since most people do not have that much disposable income, individuals are required to carry a minimum amount of liability insurance. The specific amount of coverage depends on an individual's state of residence.
Liability insurance does have its restrictions, though. For one, it only covers the driver who was not at-fault and his or her passengers. This means that the at-fault driver must pay for his or her own auto repairs and medical expenses out-of-pocket.
Second, the at-fault driver's passengers are responsible for covering their own medical expenses if they suffer injuries in an auto accident. As such, passengers assume this risk when they ride with drivers who only carry liability coverage.
Even though liability insurance has its restrictions, it is adequate for many drivers. Additionally, it is the cheapest coverage option available, so individuals who are on tight monthly budgets may look to liability as their most viable option.
Since there are so many insurance companies out there, insurance shoppers are advised to use an insurance quote service for help picking the right coverage.
