| Your
automobile is a valuable asset which could be very expensive to repair
or replace if is damaged. Part of what auto insurance does is to
pay for the repair or replacement of a vehicle which is damaged either
as a result of your driving or from other causes not related to driving,
such as theft or storm damage. Without insurance, many people would
be unable to replace vehicles that are stolen or become severely damaged.
Auto insurance also
covers your legal liability which could arise if you injure another person or
damage another person's property with your vehicle. Depending on the extent
of the damage or injury caused, the potential amount for which you could
become liable is far in excess of the value of your automobile, perhaps
in the hundreds of thousands of dollars or more. Auto liability insurance
pays the damage for which you become liable, up to the dollar amount of
liability coverage that you purchased. Without auto liability insurance,
all of your personal assets could be at risk. If
you are sued based on operation of your vehicle, auto insurance also pays
for the cost of your defense. Defending a lawsuit in court can be very
expensive, even if ultimately you are found not to be legally responsible for
any damages. |
