What Is Liability Insurance For Car

Liability car insurance is a safeguard against a drivers personal assets in the event that they cause an accident that results in bodily harm or property damage to another.

What is liability insurance for car. Financial protection for a driver who while operating a vehicle harms someone else or their property. Liability insurance is an essential part of almost every car insurance policy. Damages to structures like homes and storefronts. Liability insurance is any insurance policy that protects an individual or business from the risk that they may be sued and held legally liable for something such as malpractice injury or negligence.

If you have a car insurance policy with liability limits of 250005000025000 your insurance company will pay up to 25000 for damages to the other drivers car if a claim is filed. Learn about property damage liability insurance. Repair or replacement of stationary objects. Yet its important to know what covers what.

If the damage is more than 25000 you will be personally liable for paying the rest. In fact drivers are required by law to carry it on their policies in nearly every state. Property damage liability insurance can help cover. Automobile liability insurance only covers injuries or.

Even in the rare state that does not require liability car insurance you may find that having liability insurance is worth the financial security. Both components bodily injury and property damage are third party benefits one that the driver cannot use personally. Understanding car insurance coverages. Vehicle repair or replacement.

Auto liability insurance is a type of car insurance coverage thats required by law in most states. Property damage liability can help protect you if youre found at fault for damaging someones property in an accident. To help you feel confident about your car insurance weve translated complicated insurance lingo into easy to understand descriptions. Auto insurance coverages can be confusing.

Liability insurance then takes care of your responsibility for paying for the damage to someone elses vehicle or other property or for any injuries to the occupants of the other car when youre at fault in an accident.