Automobile Liability Insurance

Think: financial protection for a driver who harms another driver in a car accident. The insurance covers damages of the driver who causes the accident but only against the third party. The insurance covers bodily and property damage. It usually has a low deductible (like $500)...sorta the bare minimum car insurance you can purchase and still legally drive.

It's the minimum and is largely what most drivers have/carry. The logic in requiring drivers to carry this insurance is pretty solid though.

Let's say you (who, like so many of us, make your money playing banjo in a Dixieland jazz band) hit some innocent driver and cost them $15,000 in medical bills. YOU don't have that money laying around. So why should it be up to THEM to pay for your texting-and-driving thing? Hence...the need for the insurance.



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