Auto insurance will pay for damage to vehicles and medical expenses for people that are injured in automobile accidents. Depending upon the type of car insurance you have, the coverage may pay for damages to all vehicles involved in an accident as well as all medical expenses, or the coverage may only pay for claims to other parties, and not for your vehicle or your medical expenses. Also, all states require minimum levels of liability auto insurance be maintained by every driver on the road. However, there is another reason you should always have car insurance – it may help you from getting sued.
A good car insurance policy will help you avoid lawsuits by paying for claims to other parties on your behalf. If you are found to be at fault in a car accident, you will be responsible for paying for damages to the other parties’ vehicles as well as their medical expenses. You may also be liable for damage to other property that was damaged or destroyed due to the accident as well.
The cost having someone’s vehicle repaired, or paying their hospital and medical expenses can be considerable. So when you’re found to be at fault in an accident, your insurance company will pay the damages for you. In many cases, the amount of damage or expense caused by your at-fault accident may be totally covered under the terms of your policy. If this is the case, other parties involved in the accident may choose to accept the amount offered by your insurance company. If they choose to accept the offer, that probably won’t be much cause for them to pursue a civil suit against you.
However, you should be aware that if the insurance car policy does not pay for all the damages or expenses incurred by the other party, you may be held liable for the amounts not covered. In the event that this happens, the other party may choose to sue you in civil court. So, it is always important that you maintain adequate policy levels to cover potential costs of damages and medical expenses to others.