You can choose to insure your car in different ways. Insurers offer different types of policies for vehicle owners. If you've started to look at coverage, then you might be thinking about choosing basic liability coverage. This insurance is cheaper than other options, so it might look like a good choice.

However, before you insure your car this way, make sure that you understand how this coverage works. Read on to learn more.

1. Liability Insurance Is Mandatory in Most States

Most states require you to have some kind of auto insurance. Most mandate that drivers have a liability policy at the very least. You might not need more comprehensive coverage, but you have a legal requirement to have ongoing liability protection.

If this insurance is mandatory in your state, then you will have to buy a policy for at least a set minimum amount. You won't meet your legal responsibilities by having a policy with a value lower than your state's minimum. You have to meet or exceed this insured sum.

In fact, you might benefit from taking out higher coverage here. If someone makes a claim on your coverage, then your insurance provider won't pay more than your policy limit. If a claim exceeds his amount, then you're liable for the remaining costs.

2. Liability Insurance Protects Other People and Their Property

Liability insurance gives you some financial protection if you cause personal injury or property damage in your car. However, your policy focuses on other people and their property.

So, for example, if you have an auto accident and someone gets hurt, then liability insurance might cover their medical costs. If you damage their vehicle, then your policy should also cover their repair costs. You won't have to pay for claims if your policy is large enough to cover them.

3. Liability Insurance Doesn't Protect You and Your Car

While liability insurance saves possible accidents, injuries, and damage costs, it doesn't give you any personal coverage. If you are injured in an accident, then you can't claim on your own policy. Your insurer won't pay to repair or replace your car. If you want this personal protection, then you need more comprehensive insurance.

To get help working out if liability coverage is the right level of insurance for your needs, talk to auto insurance policy providers. They can also talk you through more comprehensive options if you want to get extended coverage.