One of the inescapable facts about driving in America today is that carrying car insurance is the law, unless you live in New Hampshire, of course. For drivers in the rest of the Nation though, it’s illegal to drive without it and drivers cannot get a vehicle registered or even participate in a state’s vehicle inspection program without it.
While there are many different insurance combinations available to drivers today in addition to different requirements by state, one constant that remains in all car insurance is liability car insurance.
Liability car coverage is commonly made up bodily injury liability insurance and property damage liability insurance. Both are meant to pay for injuries or damages the covered driver caused to someone else. For example, bodily injury pays out for injuries to the other motorist in an accident and property liability insurance pays for the damages to their car such as a bumper or fender. Property liability insurance also pays out for another motorist’s property such as a home and even a mailbox.
While each state has its own requirement regarding property liability insurance, it’s always best to carry as much coverage as possible. Absent that though a good rule of thumb for drivers is to have enough property liability insurance to protect the amount of assets a driver has.
For example, in Texas the minimum amount of property liability insurance a driver is required to carry is $25,000. If a covered driver has a net worth of $250,000 and only carries the state minimum while causing an accident with $100,000 in property damages, the injured party could seek litigation to recoup the difference between what property liability insurance will pay and the difference.