What Does Auto Liability Insurance Cover?

Having auto liability insurance is an essential part of owning a vehicle. It is legally required in most states, and provides essential protection for you and your finances in the event of an accident. But what exactly does an auto liability insurance policy cover?

What is Auto Liability Insurance?

Auto liability insurance is a type of insurance coverage that covers bodily injury and/or property damage to another party that results from an accident that you are at fault for. It also provides coverage for legal expenses if you’re sued. It is required by law in most states, and is typically the minimum coverage required.

What Does Auto Liability Insurance Cover?

Auto liability insurance typically covers two types of expenses: bodily injury and property damage. Bodily injury coverage covers medical expenses, lost wages, and other related costs for the injured party. Property damage coverage pays for repairs to any property that is damaged in the accident. It also pays for legal expenses, including attorneys’ fees, if you’re sued for damages related to the accident.

Auto liability insurance does not cover damage to your own vehicle, or any other property that you own. It also does not cover medical expenses for yourself or your passengers. For these types of coverage, you will need to purchase additional insurance.

How Much Auto Liability Insurance Do I Need?

The amount of auto liability insurance you need depends on your state’s requirements, as well as your personal needs. Most states require a minimum amount of coverage, and some states require additional coverage. It is important to check with your state’s Department of Motor Vehicles to determine what is required. You may also want to consider purchasing additional coverage if you have assets that could be at risk in the event of an accident.

Conclusion

Auto liability insurance is an important part of owning a vehicle. It provides essential protection in the event of an accident, and is legally required in most states. It covers expenses related to bodily injury and property damage, but does not cover damage to your own vehicle or medical expenses for you or your passengers. The amount of coverage you need depends on your state’s requirements and your personal needs.