If you or your vehicle are at fault in an automobile accident, liability insurance covers damage to the property and/or bodily injuries to others up to the limit of your policy. This coverage is required by most states and usually covers two parts.

  • Property damage covers damage to the other party’s property. This could include damage to vehicles, a yard, fence, a home, public utility poles, or other property damaged as a result of the accident. In addition, there could be other items covered such as the cost of a rental car to the other party.
  • Bodily injury covers injuries sustained by another person because of the accident. This can include medical bills and prescriptions, lost wages, and pain and suffering.

Auto liability insurance provides coverage for bodily injury and property damage you are liable for to another party in the event of an accident. Liability does not cover damage to your property and your injuries regardless of whether you are at fault or not at fault. If you would like to increase your protection, talk to your agent or carrier about collision, comprehensive, medical payments, uninsured motorist, rental car, and other coverages.

Several factors affect the cost of your liability insurance as part of your auto insurance policy, including but not limited to:

  • Coverage limits. Higher coverage limits may cost more.
  • Driving history. Tickets and accidents will cause higher rates.

There are several reason to carry insurance:

  1. Liability insurance helps protect you (up to your limits), by paying for covered property damages and injuries you are liable for. These are amounts you may have to pay out of pocket if you don’t have liability insurance or not enough liability coverage.
  2.  Most states (not all) require liability insurance to legally drive your vehicle (required limits vary state to state). It is also important to note that not carrying the state minimum auto liability insurance will come at a financial cost which varies state to state but may include a motor vehicle ticket and court fines, suspension of your driver’s license and reinstatement fee(s), and having your car impounded.

To find out how much coverage you need, talk to your local agent. Liability coverage shouldn’t be one-size-fits-all.

In case of serious accidents or lawsuits that may exceed the limits on your current automobile liability policy, make sure to discuss an umbrella policy with your agent.

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