Everyone needs some kind of auto insurance.
If you own or drive a vehicle, you must have insurance in case of an accident. Your insurance company will not accept responsibility for losses if you don’t have liability insurance.
When you get behind the wheel, you take on many risks. You could injure someone or damage their property. That’s why you need to get a policy today.
If you’re still wondering what automobile liability insurance covers, you’re in the right place. We’ll cover everything you need to know about it. Read further to get the inside scoop.
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What Is Automobile Liability Insurance Coverage?
Auto liability insurance coverage is mandatory for anyone that owns or drives a car, truck, or motorcycle. It is a type of insurance that provides financial protection if the policyholder is at fault in a car accident. This coverage pays the cost of medical bills, property damage, or other costs associated with the accident.
It also covers legal fees for any injury claims made against the policyholder. Depending on the state, the minimum required coverage for bodily injury coverage starts at $15,000 per person and $30,000 per incident. This ensures that policyholders are financially protected if they are responsible for an accident.
How Does It Work?
When you purchase this policy, it typically includes two types of car insurance coverage. They are known as bodily injury liability and property damage liability.
Bodily Injury Liability
Bodily injury liability coverage provides financial protection if you cause an accident that results in injuries to other people. Your policy will help cover medical expenses, hospital bills, rehabilitation costs, lost wages, and even legal expenses if you are sued.
Property Damage Liability
Property damage coverage comes into play when you cause damage to someone else’s property in an accident. This can include other vehicles, buildings, fences, or any other property. Your policy will help cover the costs of repairing or replacing the damaged property.
Why Is This Insurance Crucial?
Firstly, it protects you from potentially devastating financial consequences if you’re found at fault in an accident. Without this, you may be personally responsible for covering the medical expenses, property damage costs, and legal fees.
Secondly, many states have mandated minimum liability coverage requirements. Failure to maintain the required coverage could lead to fines, license suspension, or other legal penalties.
Limits and Exclusions
These types of car insurance may include limits on the amount of coverage for each person involved in an accident. It also limits the total amount that can be paid out for the claim in total.
Exclusions may include damage to your vehicle, intentional harm or damage done by another driver, and certain types of vehicles, such as off-road or motorcycles. In addition, most auto policies will exclude coverage for any costs arising out of car insurance fraud.
Learn Everything About This Liability Insurance
Automobile liability insurance coverage provides financial protection against claims arising from auto accidents. It’s an important protection that all drivers should have, especially in case of an unforeseen accident.
With the right coverage, you will be protected from expenses associated with damage or injury. Choose a policy that meets your needs, budget, and lifestyle today.
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