What Does Car Liability Insurance Cover?

Car liability insurance is a type of auto insurance that covers the costs associated with property damage and/or bodily injury when you are at fault in an automobile accident. Liability coverage is required in most states and is the most important type of auto insurance you can get. It will cover you if you cause an accident, and protect you financially if there are any legal costs associated with it.

What Does Liability Insurance Cover?

Liability insurance typically covers the following: medical expenses, property damage, and legal fees. It is important to note that liability insurance does not provide coverage for you or your vehicle. It will only cover the other party in the accident if you are at fault. If you are not at fault, then the other driver’s liability insurance will cover your expenses.

Medical Expenses

Liability insurance will cover medical expenses for the other party in the accident if you are at fault. This includes hospital bills, doctor’s visits, and prescription medications. It can also cover any necessary rehabilitation or physical therapy. This type of coverage will cover the other party’s medical expenses up to the limits of your policy.

Property Damage

Liability insurance will cover the cost of repairing or replacing the other party’s vehicle if you are at fault in an accident. This includes damage to the body, engine, and interior of the vehicle. It can also cover the cost of repairing any other property that was damaged in the accident. This type of coverage will cover the other party’s property damage up to the limits of your policy.

Legal Fees

Liability insurance will cover the cost of legal fees if you are sued in a civil court. This includes costs associated with court fees, lawyers fees, and any settlements that may result from the lawsuit. This type of coverage will cover the other party’s legal fees up to the limits of your policy.

How Much Liability Insurance Do I Need?

The amount of liability insurance you need will depend on your individual needs and circumstances. Generally, it is recommended that you purchase at least $100,000 in liability coverage. This is the minimum amount of coverage required in most states. It is important to remember that the more coverage you purchase, the more protection you will have in the event of an accident.