What Is Liability Auto Insurance

The most important auto insurance coverage is your state’s minimum liability coverage. More than anything else you need to maintain this policy to keep yourself legal to drive. Drivers are obliged by state to acquire a minimum of financial responsibility when driving. Without this coverage, you risk losing your driver’s license and fines. Get into an accident without liability coverage and you could be facing enormous penalties including bills from the damages you caused. Find out more about what liability auto insurance is and compare auto insurance quote from our website, for free.

# stagedcrashLiability coverage covers your legal liability for a covered accident that involves bodily injuries to another person or damage to his property, up to the limit of liability you selected in contract. One component of the policy, Bodily Injury Liability coverage, it covers other people’s bodily injuries if you are the guilty driver in a car accident. It also provides for a legal defense if another party in the accident files a lawsuit against you. Claims for bodily injury may be for such things as medical bills, loss of income, or pain and suffering. Keep in mind that the typical medical bills for an accident are huge. Without proper coverage, you risk having your belongings sold by authorities in order to reimburse the victims.

Liability and property damage coverage is there to protect the other drivers on the road from damage you cause. Your car insurance policy probably lists liability as bodily injury 30/60 as an example. 30 is the placeholder for how much will pay out for medical expenses, pain, and suffering per person and is valued at $30,000. 40 is the placeholder for how much will pay out for medical expenses, pain, and suffering per accident and is valued at $60,000.

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