If you are involved in a car accident that causes harm to another person or his or her property, you may be held liable for all subsequent costs, including medical bills, property repair, and pain and suffering. Liability insurance covers those expenses for you. You might be the world’s best driver, but if an accident happens that is deemed to be your fault, it won’t matter. You will be the one liable for damages to your vehicle, not the other driver.
Though some drivers may wonder why the law demands liability auto insurance, it is certainly in your best interest to have it. Even a minor fender bender can result in vehicle damage, whiplash, and lost wages. Those outcomes can cost you hundreds, if not thousands, of dollars in fees. Though liability coverage is the only type of auto insurance required by the state of California, you should consider collision and comprehensive insurance, as well. Collision insurance offers financial coverage for your vehicle in the event of an accident, and comprehensive insurance protects your car from other incidents such as theft or floods.