Liability Auto Insurance Explained
Liability auto insurance coverage may be the legal minimum a driver must carry on their auto, but it may also account for the majority of almost any policy. But what is it exactly? To find out, read on or visit our page about liability auto insurance.
In essence, if you’re responsible for an auto accident that injures someone, damages another person’s vehicle or other property, your liability car insurance may pay the damages. Obviously, the damages to a person could be medical in nature, while the rest could be to repair or replace the damaged vehicle or property. It may be divided into two categories for the above reasons: bodily injury liability and property damage liability. The amount of coverage provided may vary from place to place, and policy to policy. Because it is perhaps one of the most important components of any auto insurance policy, your level of liability auto insurance protection can usually be raised above the minimums required in a given state or municipality.
As mentioned above, the basic components of auto liability insurance are bodily injury (BI) and property damage (PD). Read more about the the basic types of auto insurance. In some policies, liability coverage may be available either as a combined single limit policy, or as a split limit policy:
Combined single limit – A combined single limit may combine property damage liability coverage and bodily injury coverage under one combined limit.
Split limits – A split limit liability coverage policy may separate the coverage into property damage and bodily injury.
The BI component of liability auto insurance coverage can help protect the policy holder should they cause bodily injury or death in the course of an accident. It may also provide for a legal defense if another party in the accident files a lawsuit against you. More specifically, claims for BI may be for such things as medical bills, loss of income, or pain & suffering. Because a high percentage of accidents could result in serious injury, you may want enough liability auto insurance coverage to equal or exceed a judgment against you in a lawsuit – without putting your personal assets in jeopardy.
The PD component of liability auto insurance coverage may be for damages to someone else’s vehicle or property. That could be the car, or it could be a tree, a shed, a bicycle, or any other property damaged during an accident. It may also provide you with legal defense if another party files a lawsuit against you for those property damages. Again, liability car insurance coverage is limited to the terms and conditions contained in your policy.
If you’d like to find out more information about liability car insurance policies, get quotes! By filling out a simple form, you can get free, no-obligation quotes.