What is Liability Coverage for Auto Insurance?

liability auto insurance

Liability protection is one of the key coverage aspects of a good auto insurance policy. In some states, the law required drivers to maintain a minimum amount of liability insurance coverage in order to drive. Auto liability coverage comes in two primary forms: bodily injury liability and property damage liability.

Bodily Injury Liability

If you’re in an accident that causes injuries to other individuals and are found to be at fault in that accident you can be legally held responsible for the costs of the care required for the injured parties to recover. Liability insurance will help you with those costs as well as your legal fees if the case against you goes to trial. The following is included among the list of what your auto liability policy may cover:

  • Medical expenses of injured parties.
  • Rehabilitation, physical therapy, and occupational therapy of injured parties, if needed.
  • Funeral costs when fatalities occur.
  • Income replacement for injured parties.
  • Pain and suffering damages awarded to injured parties.

Policies will vary from one company to the next, but will generally offer coverage similar to this with bodily injury liability. Keep in mind, though, that there are policy limits per individual and per accident to consider as well as deductibles that are expected to come out of your pocket.

Property Damage Liability

Most accidents don’t happen without the property of someone else being involved. Property damage liability coverage helps you to pay for the property of others that was damaged or destroyed as a result of your traffic accident. This property can include a wide range of surprising things and the costs can add up quickly if you aren’t prepared with adequate property damage liability coverage. They include things like:

  • Bicycles
  • Buildings
  • Fences
  • Fire Hydrants
  • Guardrails
  • Houses
  • Landscaping
  • Motorcycles
  • Other Cars
  • Utility Poles

That is on top of the coverage it provides for your legal defense if your case goes to court. This is critical because even if you’re found innocent of the claims made against you, legal fees can be devastating for your financial situation. The fact that your liability insurance protection covers your legal fees (up to the plan limit) too means you can rest easier knowing you are protected if an accident occurs.

What is Liability Coverage for Auto Insurance?

It is one of the most important types of insurance coverages available today. Not only is it required by law in almost every U.S. state, but it is also your first line of defense against lawsuits related to your driving – whether they are legitimate or frivolous in nature.

To learn more about liability coverage for auto insurance, speak to own of our insurance experts at BOLT Insurance Agency. Call 1-800-216-4171 today.