If you have an accident, call your insurance agent and report it. Your insurance company will assign an adjuster who will handle the claims against you. This is what your liability insurance does for you. It will pay the other people in the accident for their losses, both property damage and personal injury losses. You should think about and discuss how much liability insurance is appropriate for you with your agent.
The second reason we have automobile insurance is to protect us from uninsured motorists and underinsured motorists. If someone without liability insurance runs into your vehicle and all you have is liability coverage, you almost certainly will be out of luck as far as being compensated for your personal injuries and property damage.
If you have uninsured and underinsured motorist coverage, you will be compensated for your property damage and personal injury losses even if an uninsured motorist runs into you.
If you are seriously injured and the other person has minimum liability coverage, you can stack your underinsured motorist benefits on top of the other driver’s liability coverage. This can be tricky and you should at least discuss your case with an experienced personal injury attorney because you can waive or lose this benefit if you do not follow some tricky notice procedures.
Please speak to your insurance agent about purchasing uninsured and underinsured motorist coverage. It could be very important to you and your family.
This is good advice, trust me, I am a personal injury lawyer.
Why do we have automobile insurance? There are two reasons. First, the State requires us to have liability insurance which pays for damages that we cause other people in an automobile accident.