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Auto insurance is something that almost everyone has to have. There are some exceptions, but for the most part, if you get caught driving without it, you can be in a lot of trouble. There are many states that will not allow you to register a vehicle unless you can prove that you have current insurance on that vehicle. If you lease or finance a new or used automobile, you have to have full coverage on the car or truck. However, those that own a car or truck outright can choose what they want, and some go with liability insurance only. This is very inexpensive, but not always the best idea.

Liability insurance should be included in any auto coverage you purchase. This is used when you are responsible for an accident or any damage to car or even life. This is the bare minimum that you can get when you buy. Without this, you would have to pay for all types of damage right out of your own pocket. If you have the liability insurance, your insurance company has to pay, though you may have a deductible that you must pay on your own. It really depends on your policy and your insurance company.

If you choose to purchase liability insurance only, you will not be able to recover any money if someone else causes damage to your car or truck. They should, by rights, have liability insurance as well, and that money will come from their insurance company. However, you never know what is going on with anyone on the road, and some do drive without insurance. If that person were to be involved in an accident with you, you may be out of luck. You can sue them, of course, but if they don’t have enough money to buy the insurance for liability, they probably will never pay any judgment against them.

It is always wise to have full coverage on any vehicle, but there are times when this is too expensive. Those just starting out in life may only have this bare minimum coverage, but they also have a car that is not worth very much. As they age though, and can afford a more expensive and reliable car, it is wise for them to have more than just liability insurance. As with home and life insurance, it is always wise to think about the unknown and to realize you never know what will happen. Cover yourself in every way you can, and you will be glad that you did.