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What does auto liability insurance cover and its types

  • Auto Insurance
  • Renee Martin
  • 4 minutes

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Auto liability insurance is required in almost all states in the country.
But what does it cover? Read on to find out
.

Liability insurance is part of your car insurance policy and protects you if you have been held accountable for injuries or property damage in a car accident. Liability car insurance is mandatory in almost all states. It helps you cover the cost of the injured party’s medical bills and the cost of repairing their vehicle.

Driving without liability car insurance is illegal, and you could attract some stiff penalties if caught driving without one. Let’s now take a look at what liability car insurance covers.

What are the types of auto liability insurance?

Auto liability insurance can be split into two types — bodily injury liability coverage and property damage. Most states require drivers to have both. But what are the differences between the two?

Bodily injury liability coverage: This type of liability coverage pays out if you hurt other people in an at-fault car accident. Bodily injury liability coverage covers medical bills, recovery treatments, and even lost wages if the injured party can’t work while undergoing medical treatment. Some insurance companies even cover funeral costs after a fatal accident.

Property damage liability cover: Having property damage liability coverage helps you cover the cost of damages to property resulting from an at-fault accident. Depending on your insurance carrier, your property damage liability coverage can help you cover the cost of repairing the other party’s damaged car. As well as other property that may have been damaged in the accident.

Each state has a minimum liability limit that all drivers must meet. So don’t hesitate to get in touch with your DMV or a local agent before buying liability car insurance coverage.

Do I need auto liability insurance?

All states require a certain amount of liability insurance. So, yes, you do need auto liability insurance to drive legally. The minimum amount of liability coverage needed in each state is often called “minimum coverage.” 

While the amount of liability insurance required may vary from state to state, all states require every driver to carry bodily injury protection and property damage liability. Some states may require you to purchase personal injury protection, uninsured or underinsured motorist protection, and property protection.

Besides, you cannot buy additional coverage such as collision insurance and comprehensive insurance without the minimum liability insurance. If you don’t have liability insurance, you are probably driving your car illegally. So make sure to get liability car insurance as soon as possible to meet your state’s minimum car insurance requirement. 

Have you been searching for affordable liability car insurance? We recommend using our car insurance tool to obtain free quotes from several car insurance companies before buying a policy that meets your needs. Click on the banner below to get started.

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What are the requirements for liability car insurance?

The minimum liability car insurance required to drive a car legally varies from state to state. For example, a state may require all drivers to have liability insurance that covers $30,000 for injuries to one person. $60,000 for injuries to multiple people. $50,000 for the death of one person, and $15,000 for property damage. 

Buying the minimum coverage needed in your state is an excellent way to protect yourself from financial losses that arise after an accident. However, we recommend buying more liability cover since medical bills can be costly. Failure to meet the expenses could put you at risk of being sued by the other party.

Suppose you have a significant amount of assets to protect in the event of a lawsuit. In that case, you may also want to consider buying an umbrella insurance policy. This can help increase the liability coverage on both your car and homeowners insurance policies to $1 million or more.

Here’s what’s not covered by liability auto insurance

Liability auto insurance does not pay for your medical bills or the repairs required to get your car back on the road. Thus, one could say that liability car insurance is only meant to pay others for the damages you cause in an at-fault car accident.

To cover your bills, we recommend purchasing health insurance for your medical bills and comprehensive car insurance for repairs to your car.

To know more about the various types of car insurance, head here.

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