What does auto liability insurance cover?


The auto liability coverage is protection for third party injury or damage that you cause. This is a coverage that is mandated by the laws of every state, which require motorists to have at least a certain amount of this coverage. 

When you are proven to be at fault in a vehicle accident, you will be made responsible to pay for any injury or damage that resulted from the accident. You can turn to your auto liability insurance to help you pay for these.

Auto liability insurance basically covers:

  • Personal injury liability. You will be responsible to pay for the hospital bills and medicine expenses of the person who was injured.  This portion of the liability may also cover compensation for pain and suffering, as well as any wages or income that was lost. The injured party may even ask for compensation for legal fees in case he had to file a lawsuit to make his claim against you.
  • Property damage liability. This will pay to fix the car/s of the other persons involved in the accident. If there were also damage to property such as fences, walls, building structures, the owners may file a claim against you for this.

Liability insurance will not pay for personal injury or damage to you or your car. It will not also pay for your medical bills in case you have to be treated for an injury you sustained during the car accident.

The amount of liability insurance is usually indicated by three numbers. For instance, a liability insurance cover is set at 15/30/5. The first number is for the injuries of one person (which is payable up to $15,000). The second number is for all the injuries incurred. Here, it is set at $30,000. The third number is the maximum limit for property damage liability, which for this policy is set at $5,000.

When you get auto liability insurance coverage, don't get the minimum requirement in an effort to get by what the law prescribes. Take a look at your assets. There may be time when liability due to bodily injury and property damage will exceed the limits set by of the insurance policy. If you just get the minimum required coverage, the other parties who have been injured and whose property has been damaged may look into your assets. Thus, the rule of thumb is to get liability insurance that will cover your assets.

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