Auto Liability insurance is a special type of coverage that pays for damages to another person’s vehicle or property in the event that you are the one responsible for the accident. Each state in the US requires car owners to have some level of auto liability insurance coverage.
Components of Auto Liability Insurance
1. Property Damage Liability Coverage
Property damage liability specifically covers damage you cause to another person’s property such as a building or mailbox. It also pays for repair/replacement costs for his/her car or other stationary objects.
What Property Liability Doesn’t Cover
Property damage liability covers none of your personal or private properties.
2. Bodily Injury Coverage
If you have caused an accident and people are injured or dead because of you, bodily injury coverage can help you in settling their:
• Medical expenses for minor or serious bodily injuries
• Funeral expenses
• Compensation for loss of income
• Bail bonds or legal defense fees for people listed on your policy
• Emergency aid at the scene of accidents
• Medical services for disease or sickness
What Bodily Injury Liability Does Not Cover
If you are responsible for the accident, bodily injury insurance pays none of your medical bills. In addition, it does not provide any compensation for replacements or repairs to your personal car, even if it has suffered serious damages.
How Much Liability Car Insurance is Enough for You?
When purchasing an auto liability insurance policy, it is very important to be very careful with the limits. Apart from meeting your state’s minimum required limits, you should strive to purchase a liability policy with higher limits to provide enough coverage and stay safe. The reason is that, if the damage or injury caused by your carelessness exceeds the limits of your coverage, it is very easy for you to be held financially responsible for the difference through a lawsuit.