Today it is simply impossible to imagine our lives without automobiles. We just depend on these metal constructions as we have to cross long distances to get to our workplace, university, etc. Some of us spend so much time driving, that vehicles become our second homes. Yet these homes are far not as safe as we may consider them. The mere look at the statistics of car accidents per year may make you lose your speech. When one is involved in a car crash, he is due to paying for both the damages and injuries he caused. Be sure this will turn out to be a round sum! Not to get in a frustrating situation or breaking your bank, it is worth learning what is liability coverage in auto insurance. This insurance coverage is designed to protect drivers financially. It covers all the expenses needed for compensating the damages as well as providing medical treatment for the injured in case the fault for the accident is yours. Liability coverage is the basic car insurance coverage, which is obligatory nearly in every state of the US.
Liability Insurance Types
Nevertheless, to better know what is liability coverage in auto insurance it is also important to understand the two liability insurance types.
1. Bodily Injury Liability
This insurance type covers the medical expenses needed to treat the injured people when you are involved in a car accident and turn to be the one to blame it for.
2. Property Damage Liability
The property damage liability cover is designed to cover the expenses for the damages caused as a result of the accident. This can include as the vehicle your car hit, so the fence, showcase, etc. damaged.
What Liability Insurance Does Not Cover
To better understand what is liability coverage in auto insurance let us find out what it is not. To put it plain, we shall discuss what this insurance policy does not cover. As you know, the liability insurance is the basic plan, and hence the least expensive. That is why it will be a nonsense to expect great advantages when purchasing it. Liability auto insurance does not cover the expenses for repairing or replacing your own car. Neither does it cover the medical expenses you got in hospital in case of an accident. When you know what is liability coverage in auto insurance, you will definitely not expect such privileges.
What Liability Insurance Plan You Should Purchase
Before you purchase your liability insurance coverage, it is essential to remember that if the sum needed for the repairing or replacing the damaged car (in case the cost for the repairing exceeds the cost of the car) surpasses the limit your insurance company must provide, you will have to add from your pocket. The difference is always left at your responsibility. Accordingly, it is advised to purchase the most expensive insurance plan that you can afford. So, no you definitely know what is liability coverage in auto insurance and can make the right choice.
CAR INSURANCE INFOGRAPHIC
WHAT IS LIABILITY COVERAGE IN AUTO INSURANCE VDEO