Liability Insurance

A Liability Insurance is much known as “third party insurance”. This insurance is a part of a general insurance system that can protect you when you accidentally damage someone else’s property, or you have caused untoward injuries while you were using your vehicle. There are two components of liability insurance: the “bodily injury liability and property damage liability. These two are the ones you need to have when you are signing up for a Liability Insurance because they’re the ones which are on top reasons or causie of an accident. Liability insurance may help you with the finances that need to be pay when it’s been legally proven that you are one who caused this kind of accident. Having a Liability Insurance can help you with this kind of matters.

Liability insurance covers two types:

  • Bodily injury liability – If you are found at-fault for an accident, bodily injury liability will be the medical expenses of the other party that is injured. It also covers legal fees and or lost wages if the other party files a lawsuit.
  • Property damage liability – If you are found at-fault in an accident, Property damage liability covers the damages to the property, which is the result of the accident. It includes Property damage liability, structures, phone poles, fences, and other types of property. It also covers the repair for the other party’s vehicle.

Liability coverage is not for you; it can only be used to pay for the damage of the vehicle or an injury of the other person. The minimum liability of this coverage varies in which state you are living.

Should I get auto liability insurance?

Yes, it is also required to get liability insurance in all states. There are instances that you cannot get any other type of insurance if you don’t have liability coverage. Liability is the baseline for all auto coverage.

Liability insurance does not cover:

  • Physical damage – liability does not include any types of damage to your car.
  • Personal Injury Protection and Medical Payments – liability does not cover any medical fees.
  • Uninsured and Underinsured Motorist coverage – liability does not cover any of these two uninsured and underinsured motorist coverage. This coverage will help you to pay for the damages.

Liability insurance limits:

Your insurer will only pay the covered liability insurance only if it varies to the coverage that you choose.  In each state has minimum limit coverage and differ from what type of coverage it is like:

  • Property damage liability – its limit is the maximum amount from the limit that you’ve set.
  • Bodily injury liability – It’s limit is per person, which they established a maximum payout for the individual that are injured because of your fault.

Now that you’ve probably known about the liability insurance, It is essential that you also think for the safety of the other people around you, especially that it is your fault in this time. You may think that liability is not for you, but it will help you to cover all the expense needed of the other party. So if you don’t have one, call your insurance agent to apply and for more details.



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