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Is car liability insurance compulsory?
Car liability insurance policies can either be combined into one single policy or split into property damage and bodily injury depending with the insurance company. Auto liability insurance is compulsory in many countries because it covers the insured’s legal responsibility to pay for third party property and medical expenses.
Is car liability insurance important?
In an accident, the guilty party is legally liable for any losses and damages that may arise from the accident. The third party could sue the insured and ruin him financially. With auto liability insurance, the insured driver is protected legally and financially against such claims.
Minimum car liability limits
Each country has got a minimum standard limit required by law. It is however advisable to get liability cover that is above the minimum limits. You want to make sure that you are adequately covered in case of an accident. Getting extra liability coverage is cheap, you only get to pay additional premium which is not much.
Is car liability insurance enough?
Auto liability insurance only covers damage done to third parties. It does not cover damage to your car or medical expenses. You therefore need own damage cover: a comprehensive insurance policy would be the best option. It covers own damage and third party bodily injury and property damage. Besides protecting yourself against third party claims you also need to insure your car against collisions that is why it is important to get full cover.
Compare quotes
Just like any insurance product, you need to compare quotes so that you get adequate cover. You may need to do a bit of some research before purchasing cover. For example it is important to know the difference between a car liability policy and car comprehensive cover. The latter can be expensive especially when you are insuring a cheap car. The best thing would be going through an insurance broker who will explain everything to you.