Motor vehicle insurance laws can be extremely different for all of the non-lawyers in the world to understand. The laws have been written, revised, added to, and re-written again. This makes it just about impossible for anyone who does not study them for their profession to have a comprehensive understanding of them. If you find yourself involved in a legal proceeding you should hire a lawyer to represent you.
The auto insurance laws that many people do not understand, but 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 is mandated by law is not 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 will be held personally liable for the difference. In this case you will 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, or even attach your paycheck in order to satisfy the debt. As you can see even if you have coverage auto insurance law is very clear on who is responsible for any damages done that exceed your coverage limitations.
Motor vehicle insurance laws are a maze, but if you have enough liability insurance you may be able to avoid any situation that would have required you to learn about the laws in the first place. Go online today and you will be able to find a new policy that is less expensive which will allow you to increase your coverage.