Liability insurance is the insurance coverage that helps if you are sued by someone for “negligence”. What does this translate to? Anytime you are in a position where you could cause any type of injury or loss to another party, you should have liability insurance. Liability insurance is available for automobile owners.
Carrying auto liability insurance is a must for everyone. Any time you get into your car, you run the risk of getting into a car accident. This may sound pessimistic but it is the truth. You may have a perfect driving record and be an extremely cautious driver but that does not mean that you are exempt from a fender bender. Other drivers can create problems for you regardless of how safe you true to be on the road.
In most states, accidents that happen in parking lots are 50/50. This means that you may have been following the rules of the road and slowly driving up the aisles in search of a parking spot very cautiously but when that other car sped out of a parking spot in reverse without seeing that you were more than halfway past it, you are equally responsible for the accident and damage that happens. If you are in the unfortunate circumstance where the driver of the other car claims that the accident was your fault and they are now suffering serious injuries and seek restitution, this is where the liability insurance comes into play.
Another example that all drivers need to carry liability insurance is in the event that your 16 year-old son decides to take the car for a joy ride and forgets to hit the brake instead of the gas at the red light, plowing into very expensive luxury model SUV, the liability insurance will also help you.
Intentional damage or loss caused with an automobile is not covered by auto insurance, however. In the event that someone irritates you and you intentionally run them off of the side of the road, causing them to feel fear and have damage to their car, your insurance liability policy will not cover any damage that occurs. Instead, you become 100% responsible for the amount of restitution the other driver seeks. Anything that is done intentionally in a destructive manner is not covered.
The moral of the story is that liability insurance is needed by all. It is well worth the money, especially when someone is suing you for injuries that they may have suffered during an accident where you were involved or at fault. Research various insurance companies to find the best coverage for the money that you are willing to spend. In different states, carrying liability insurance is required by law as the minimum insurance that you do carry. For new cars or cars that you purchase/lease, you may be required to purchase comprehensive insurance which includes liability coverage.