What does liability insurance cover?

Auto liability insurance; a type of auto insurance coverage required in the majority of states by law. If you’re involved in an accident and determined to be at fault, you are liable for the accident. Liability coverage will help you pay for the other person involved in the accidents expenses.

Liability coverage comes is going to come in two forms. The first is bodily injury liability coverage and following is property damage liability coverage. The majority of drivers carry both types of insurance.

What is covered by auto liability insurance?

Auto liability insurance will help cover the other person’s medical expenses & property damage by way of two types of coverage;

Bodily injury liability coverage

If you are the person at fault for an accident with an injured party involved, bodily injury liability coverage will help pay for their personal medical expenses.

Property damage liability coverage

If you are the cause of an accident and it damages someone else’s property, property damage liability coverage will help pay for repairs to the other party’s property.

What are the coverage limits for liability insurance?

The amount the insurer pays for a covered liability insurance claim, is going to depend on the coverage limits you choose on your policy. Every state sets minimum coverage limits for bodily injury and property damage that drivers have to buy. You always have the option to purchase additional liability coverage. 3 common liability coverage limits on your car insurance policy may be:

Property damage liability limit

The maximum amount your insurer would have to pay to repair any damage you may cause to another party’s property. The maximum payout wouldn’t exceed the limit you have set for the coverage.

Bodily injury liability limit per person

This limit will establish a maximum payout for each individual involved, who is injured in an accident that you may have caused.

Bodily injury liability limit per accident

Sets a cap on what may be the total amount that your insurance carrier will pay out for all the medical expenses the other people may encounter from a single accident you have caused.

What isn’t covered by auto liability insurance?

Auto liability coverage usually will not pay for damage to your own vehicle after an accident. That’s where collision coverage comes in to help out.

Auto liability coverage may not extend to the costs associated with your own personal injuries after an accident you are the cause of. If you’re looking for this type of coverage, you may want to take a look at medical payments coverage.

If you need help understanding auto liability insurance in more detail or coverage requirements? Speak to one of our lovely local agents. [click here to call us]