Basic liability insurance is the minimum insurance that any driver needs to purchase in order to legally drive a vehicle. The amount of basic liability insurance that a driver needs to purchase varies by state and is determined by each state



Basic liability is almost always described using three numbers in the form 10/20/10. [10/20/10 is merely an arbitrary example and may not apply to your specific state. Please consult an insurance agent within your state or contact your state office of automotive insurance for the minimum amount of liability insurance required in your specific state].

The first "10" in our example refers to the maximum medical payout - $10,000 - to any one individual in any one accident. The number "20" in our example is the total medical payout available - $20,000 - for any one accident regardless of the number of people involved and regardless of the severity of their injuries. The final "10" in our example refers to the maximum amount of property damage - $10,000 - that the insurance will cover. Property damage generally refers to the repair or replacement of the other party's vehicle, although property damage is not limited to vehicles only.

While basic liability insurance allows a driver to legally operate a vehicle on a public roadway it should not be assumed that a driver is "safe" simply because he or she has purchased affordable high risk car insurance.

The problem with basic liability insurance is that in many accidents the minimum basic coverage simply is not enough to pay for all required medical treatments and to pay for all property damage.

If you elect to purchase only the basic minimum liability insurance coverage and you are involved in a serious accident it is quite possible that you could be held personally responsible for paying any medical bills and any property damages in excess of the minimum amounts paid by your insurance.

If you own a home or if you have a savings account or if you own any other asset, a court could award those assets to the other party as payment for the bills that your insurance did not cover.

For this reason many people choose to purchase more insurance coverage than the basic liability policy. Purchasing higher amounts of liability coverage than the minimums required by your state will cost you extra in the form of a higher premium each month, but the peace of mind that you realize from purchasing additional insurance coverage may be worth the extra cost.

If you finance a car your lender will not allow you to purchase only an affordable high risk car insurance policy, but will require that you purchase, in addition to a liability policy, a collision policy and a comprehensive policy as well, at a cost considerably above the cost of a basic liability policy.

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The internet can provide many places for quotes. These particular websites provide quotes from over 100 companies in each type of insurance. They are some of the largest providers in the country and quotes are provided from one website.