Auto Liability Insurance

In most U.S. states, auto liability insurance coverage is a legal requirement for driving a car. Yet the most basic policy may not provide the coverage you need if you are in a serious accident. It pays to understand liability car insurance and adjust your policy to meet your needs and budget. There are two basic components of liability car insurance:

1. Bodily injury liability coverage
may pay for harm to other people

Bodily injury liability coverage may help pay the costs if people are injured or killed in a coverage accident you cause. This may include medical expenses, loss of income and in some cases, legal fees if you are sued.

2. Property damage liability coverage
pays for other people's property and not yours

Property damage liability insurance helps pay for damage done to someone's property as the result of a covered accident for which you are responsible. It may help cover the expenses of repairing or replacing a car, fence or other property damaged during the covered incident.

Minimum limits on auto liability insurance may not provide enough coverage

A limit is the maximum amount your insurance may pay per event. For example: if you have a property damage limit of $10,000 and cause $15,000 in damages in a covered accident, you are responsible for the excess $5,000. If you carry only the state minimum required liability car insurance with the lowest limits and you are responsible for a bad covered accident, you would to pay the balance of the claims that exceed your policy limits. It's smart to select the highest auto insurance liability limits you can comfortably afford so you have adequate coverage if the unthinkable happens.

Required minimum amounts on liability car insurance vary from state to state

How much liability auto insurance you are required to buy depends on the state where you reside. How much you buy beyond the legal minimum depends on your finances and assets. If money need to settle for state minimum limits, but it can be risk. If you have size able assets, you may want to consider higher limits, like those found in a personal umbrella policy that offer an extra layer of protection.

Auto liability insurance alone doesn't cover your car

If you opt for liability car insurance alone, you are legally covered, but damage to your vehicle isn't. That could cost you thousands to repair or replace the vehicle you depend on everyday. Collision coverage and comprehensive car insurance coverage help pay for damage to your vehicle if coverage applies.

Auto insurance option can enhance your coverage

If you lend your car for personal use, you need to make sure any accidents caused by them would be covered. Borrowed car insurance is a simple and inexpensive you can buy with your auto liability insurance policy for extra protection. It may also provide coverage if you occasionally use your car for business purposes and are involved in a covered collision with another driver. Get the details from your actual policy. If you don't own a vehicle but borrow someone's car longer than a month or rent a vehicle on a regular basis, you should buy non owner auto insurance to help pay any claims if you are at fault in a covered accident.

Insurance term, definitions and explanations are intended for information purposes only and don't in any way replace or modify the definitions and information contained in individual insurance contacts, policies or declaration pages, which control coverage determinations. Such terms may vary by state, and exclusions may apply. Discounts may not be applied to all policy coverages. more info