The auto insurance laws that many people don't understand. Should, are the ones relating to liability coverage. Liability coverage is the most important part of your policy. This is what pays for damages to the other driver’s car and any injuries sustained by them in an auto accident.
The part many people are surprised to learn is that the minimum amount of liability insurance that's mandated by law isn't enough coverage in many instances. If you only have $5,000 dollars worth of liability and cause injuries to the other person that result in $28,000 dollars you'll be held personally liable for the difference. In this case you'll need to come up with $23,000 dollars out of pocket.
If you don’t have this money handy then a judge can order you to sell stocks, liquidate other assets. Even attach your paycheck in order to satisfy the debt. As you can see even if you've coverage auto insurance law is very clear on who's responsible for any damages done that exceed your coverage limitations.
Motor vehicle insurance laws are a maze. If you've enough liability insurance you may be able to avoid any situation that'd've required you to learn about the laws in the first place. Go online today and you'll be able to find a new policy that's less expensive which will allow you to increase your coverage.