This type of insurance coverage is helpful in covering the costs of the other driver’s property and bodily injuries if you have been found the person to be at fault in an accident.
This auto liability coverage definition may sound simple, but here’s a real-life example to further make your understanding better.
Suppose you are at a four-way stop which is located a few blocks away from your house. As you have taken this route hundreds of times, you don’t pay enough attention to notice that it is the other car’s turn to go – until it’s too late. The next thing you know; you have smashed into the car in the middle of the intersection. At this point, your insurance company will work with the other driver’s insurance company to determine who is at fault. Even if you have been at fault, there is nothing to worry about if you have a liability insurance, because your insurance provider will cover costs for the driver’s damaged car, minus your deductible, and up to your covered limit.
There are two types of liability coverages which come under this insurance:
*Minimum liability limits for each of these coverage types vary depending on which state you live in. Liability coverage cannot be used to pay for your vehicular damage or personal injury costs. For that, you will need comprehensive and/or collision coverage.
Yes. A certain amount of liability insurance is required in all states – this is often referred to as “minimum coverage.” Although, the coverage types and amounts vary from state to state; all states require property damage liability (PD) and bodily injury (BI) protection. Some states also require personal injury protection insurance, uninsured or underinsured motorist protection and/or property protection. You can opt for a larger amount than the minimum required by your state, depending on your needs.
Just think of liability insurance as the baseline for auto coverage. Collision coverage and comprehensive coverage – not to mention other optional coverages like workers compensations, and personal injury protection until you have adequate liability insurance.
If you don’t have liability insurance, it’s important that you get it as soon as possible to meet your state’s minimum insurance requirement. Take the first step and start your auto liability insurance quote online with AIA.