{"id":2000,"date":"2023-10-26T14:00:00","date_gmt":"2023-10-26T14:00:00","guid":{"rendered":"https:\/\/businessyield.com\/ins\/?p=2000"},"modified":"2023-10-26T09:59:17","modified_gmt":"2023-10-26T09:59:17","slug":"what-is-liability-car-insurance-meaning-what-it-covers","status":"publish","type":"post","link":"https:\/\/businessyield.com\/ins\/car-insurance\/what-is-liability-car-insurance-meaning-what-it-covers\/","title":{"rendered":"What Is Liability Car Insurance: Meaning & What It Covers"},"content":{"rendered":"

Liability car insurance, also known as auto liability insurance helps financially protect you if you’re found at fault in an auto accident. It can help cover an injured person’s medical bills or repairs to someone’s vehicle. Drivers are legally required to carry liability insurance in most states.<\/p>

\u201cLiability\u201d is just another word for responsibility. So, if you\u2019re ever found at fault after an accident, whether you crash into another car, or a pedestrian or plow down your neighbor’s picturesque picket fence, you\u2019re legally responsible (or liable) to pay for the damages you cause. With car liability insurance, your insurer foots the bill on your behalf.<\/p>

Understanding liability car insurance<\/strong><\/span><\/h2>

Liability car insurance is the part of a car insurance policy that provides financial protection for a driver who harms someone else or their property while operating a vehicle. Car liability insurance only covers injuries or damages to third parties and their property\u2014not to the driver or the driver\u2019s property, which may be separately covered by other parts of their policy. <\/p>

The two components of liability car insurance are bodily injury liability and property damage liability. Every state except New Hampshire requires drivers to have some degree of liability coverage.<\/p>

Liability car insurance helps cover the cost of damage resulting from a car accident. In many states, if a driver is found to be at fault in the accident, their insurance company will pay the property and medical expenses of other parties involved in the accident up to the limits set by the policy.<\/p>

States with no-fault auto insurance, however, drivers involved in an accident must first file a claim with their own insurance companies regardless of who was at fault. In those states, drivers are typically required to purchase personal injury protection (PIP) coverage, which covers their accident-related medical expenses as well as those of their passengers.<\/p>

Liability car insurance consists of two types of coverage:<\/p>

Bodily injury<\/strong><\/span><\/h5>

The bodily injury liability portion of a car insurance policy covers an at-fault driver, so they are not liable for others’ emergency and ongoing medical expenses, loss of income, or funeral costs. It also helps cover the policyholder\u2019s legal fees when the accident results in a lawsuit.<\/p>

Property damage<\/strong><\/span><\/h5>

Property damage liability helps cover the costs of repairing or replacing the vehicles of other drivers involved in the accident. It also covers the damage done to other forms of property by the policyholder’s vehicle, such as fencing, mailboxes or buildings.<\/p>

Liability car insurance limits<\/strong><\/span><\/h3>

Liability car insurance has coverage limits, which is the maximum that your insurer will pay out for bodily injury and\/or property damage to others if you are at fault in a car accident.<\/p>

You can choose your liability limits. Most states require a minimum level of liability coverage, but it\u2019s usually not enough to properly protect you if you\u2019re in a crash.<\/p>

Liability car insurance limits are typically shown as a series of three numbers. For example, you might see it written as 15\/30\/5. The first two numbers are for bodily injury coverage and the third number is for property damage coverage. For example, here\u2019s what 15\/30\/15 means:<\/p>